September 10, 2023
The Metaverse Revolutionizing Realty's Future
Metaverse has the potential to revolutionize the real estate industry. Here are some of the ways that the metaverse could change real estate:
Virtual property viewings: In the metaverse, buyers could virtually tour properties from anywhere in the world, without having to travel. This would make it much easier for buyers to find and purchase properties, especially for those who live in remote areas.
Virtual staging: Real estate agents could use the metaverse to create virtual staging’s of properties, which would allow buyers to see how a property would look with different furniture and décor. This would help buyers to visualize how they would use the space and make it easier for them to make an offer.
Real estate transactions: The metaverse could also be used to conduct real estate transactions. Smart contracts could be used to automate the process of buying and selling property, which would make it more efficient and secure.
New real estate opportunities: The metaverse could also create new opportunities for real estate investment and development. For example, developers could create virtual worlds that are specifically designed for real estate use. These worlds could be used for anything from shopping malls to theme parks.
The metaverse is still a new technology, but it has the potential to have a major impact on the real estate industry. As the metaverse continues to develop, we can expect to see even more innovative and exciting applications for real estate.
Here are some additional thoughts on the future of metaverse in real estate:
The metaverse could make it easier for people to buy and sell real estate in different countries. This could open up new markets for real estate investors and developers.
The metaverse could create new opportunities for real estate education and training. For example, real estate agents could use the metaverse to give virtual tours of properties or to provide training on how to use real estate software.
The metaverse could also be used for research and development in the real estate industry. For example, developers could use the metaverse to test new ideas for real estate projects or to simulate the impact of different environmental factors on real estate values.
The metaverse has the potential to revolutionize the real estate industry. As the metaverse continues to develop, we can expect to see even more exciting and innovative applications for real estate in the metaverse.
July 05, 2023
Banks may give up rights to revive housing projects
The recent developments in the housing sector indicate that several high-street banks are willing to waive their first claims to assets and cash flow in order to help new financiers revive struggling housing projects. This move is aimed at addressing the challenges faced by millions of homebuyers across the nation due to unfinished projects.
According to a survey by ANAROCK, as of May 2022, over 4.80 lakh units that were started in 2014 or earlier and over 4.48 lakh crore worth of projects were still under construction in the top 7 cities. The value of unfinished projects in the country is expected to exceed 5.5 lakh crore, as per a banker's estimate.
Historically, banks have been reluctant to relinquish their first entitlement to cash flow in such projects classified as non-performing assets (NPAs). However, given the strengthening real estate market and the potential benefits, some bank CEOs and industry leaders are now open to giving up their rights to new lenders offering priority funding.
ANAROCK data shows that the housing inventory overhang in the top 7 cities has decreased from 42 months in Q1 2018 to just 20 months by the end of Q1 2023, the lowest in the past five years. The inventory overhang represents the number of months it would take to sell the unsold housing stock at the current absorption rate. A healthy inventory overhang is typically considered to be in the range of 18 to 24 months.
The completion of these stalled projects largely depends on new funding from new lenders, as most banks with existing sticky loans to these projects are hesitant to provide additional funding. New capital sources, such as the SWAMIH Fund administered by SBICAP Ventures, are expected to play a crucial role in providing the necessary funding and would naturally expect first access to the cash flow as homebuyers start paying the remaining balance of their purchase price.
The article also mentions that banks are realizing that holding onto their first claim rights has not been beneficial, as the projects have been stranded for years and the project costs have escalated. Banks are now willing to surrender their first claim in projects where the cash flow is expected to be substantial.
In 2022, the majority of stalled or delayed projects were concentrated in the Mumbai Metropolitan Region and the National Capital Region, accounting for 77% of the total. Bangalore, Chennai, and Hyderabad in the southern part of the country represented only 9% of the total projects affected.
Overall, the willingness of banks to give up their rights and prioritize funding for struggling housing projects reflects a shift in their approach and a recognition of the need to address the challenges faced by homebuyers and the potential benefits of reviving these projects in a strengthening real estate market.40,000 residential property buyers in a bind due to his unfinished work, is largely responsible for the steps to resume delayed projects.
The real estate market relied on consumer spending, and in the instance of Amrapali, both the government and banks disregarded their obligations, the supreme court ruled in a landmark decision on July 23, 2019. The court ordered the federal and state governments to take the necessary actions to aid homebuyers who have been similarly duped. Four months following the Supreme Court decision, the SWAMIH Fund was made public.
June 28, 2023
How to buy
In this digital age, technology has revolutionized the way we conduct various activities, including buying real estate. Online platforms like TopPropMart have made it easier for individuals to explore, evaluate, and purchase properties from the comfort of their homes.
Step 1: Create an Account
To begin your property search, visit the TopPropMart website and create a free account. Fill in the required information, such as your name, email address, and contact details. Once you've completed the registration process, log in to your newly created account.
Step 2: Define your Property Requirements
Before delving into property listings, it's crucial to define your requirements. Consider factors like location, budget, property type (apartment, house, commercial), and any specific amenities or features you desire. The TopPropMart dashboard allows you to filter search results based on these criteria, saving you time and effort.
Step 3: Explore Property Listings
Once you've identified your preferences, navigate to the property listings section on the dashboard. Use the search filters to narrow down the results according to your requirements. Browse through property descriptions, high-quality images, floor plans, and other essential details provided by the sellers. Take note of properties that catch your interest.
Step 4: Virtual Tours and Inspections
TopPropMart offers a unique feature: virtual tours. Take advantage of this functionality to virtually explore properties of interest. Utilize the dashboard's interactive tools to view different areas of the property and get a feel for the space. If a particular property piques your interest, you can also schedule an in-person inspection at your convenience.
Step 5: Communicate with Sellers
Found a property that matches your needs? Use the TopPropMart dashboard to communicate directly with the sellers or their authorized agents. You can inquire about additional details, negotiate prices, discuss terms, and address any concerns you may have. The dashboard ensures a seamless communication channel between buyers and sellers.
Step 6: Documentation and Financials
Once you've finalized your decision to purchase a property, it's time to proceed with the necessary paperwork and financial arrangements. TopPropMart offers secure document management features that enable you to upload and share essential documents, such as agreements, identification, and financial statements. Collaborate with the sellers and complete the required formalities within the dashboard.
Step 7: Secure Transactions
When it comes to financial transactions, TopPropMart prioritizes security and provides a trusted payment gateway. The dashboard facilitates secure online payments, ensuring that your financial information is protected. Follow the instructions provided to complete the transaction and secure your property purchase.
Step 8: After-sales Support
Congratulations on your successful property purchase! Even after the transaction is completed, TopPropMart continues to provide after-sales support. You can reach out to the support team through the dashboard for any assistance or guidance you may require during the handover process or for any post-purchase queries.
Buying property online has become a convenient and efficient process with platforms like TopPropMart. The intuitive dashboard and its comprehensive features empower buyers to explore, evaluate, and purchase properties seamlessly. By following the steps outlined in this guide, you can confidently navigate the TopPropMart dashboard and make informed decisions when purchasing your dream property. Happy property hunting!
June 28, 2023
At TopPropMart, we understand that owning a home is a cherished aspiration for many individuals and families. We also recognize that the financial aspect of purchasing a property can be challenging. That's why we offer comprehensive home loan services to make your dream of homeownership a reality.
We are proud to collaborate with FinQy, a renowned financial services company, to provide you with a one-stop solution for all your home loan needs. Our partnership ensures that you have access to a wide range of loan options and competitive financing terms, giving you the flexibility and affordability you need.
When you choose TopPropMart for your home loan, you benefit from our personalized approach. Our experienced teams take the time to understand your financial situation, goals, and preferences. This allows us to offer suitable loan solutions tailored to your needs. We provide expert guidance and support throughout the loan application process, ensuring that you make informed decisions and secure the best possible terms.
Transparency and integrity are at the core of our values. We provide clear and concise information about our loan products, including interest rates, repayment terms, and associated fees. Our goal is to empower you with knowledge, enabling you to make sound financial choices with confidence.
We also value your time and strive to make the loan application process hassle-free and efficient. Our streamlined loan processing ensures a quick turnaround, and we facilitate smooth communication between all parties involved. By leveraging technology and minimizing paperwork, we aim to provide you with a seamless experience.
Take the first step towards homeownership today with TopPropMart. Visit our website to easily apply for a home loan and let our expertise and dedication guide you through the process, making your dream of owning a home a reality.
June 28, 2023
After sales service
TopPropMart understands that the real estate journey doesn't end with the completion of a property transaction. That's why we go the extra mile to provide exceptional after-sales service to ensure our customers' satisfaction and support them through the post-purchase phase. With our dedicated team and comprehensive assistance, you can rest assured that TopPropMart is there for you even after you've sealed the deal.
1. Handover Assistance:
We understand that the handover process can sometimes be complex and overwhelming. Our after-sales team is ready to assist you in navigating this phase smoothly. Whether it's coordinating with the property owner or addressing any concerns or discrepancies, we're here to ensure a seamless transition into your new property.
2. Post-Purchase Queries:
Have questions or concerns after the purchase? Our support team is just a click away. Whether you need assistance with property-related matters, documentation, or even general guidance, we're committed to providing prompt and helpful responses. We aim to address any post-purchase queries, ensuring your peace of mind and satisfaction.
3. Resale and Rental Support:
Should you decide to sell or rent out your property in the future, our after-sales team can provide guidance and support. We can assist you in listing your property, connecting with potential buyers or tenants, and navigating the entire process. Our aim is to make your resale or rental experience as smooth and efficient as possible.
TopPropMart's commitment to customer satisfaction extends well beyond the initial transaction. Our after-sales service ensures that you receive comprehensive support, assistance, and guidance throughout your property ownership journey. Whether it's handover assistance, post-purchase queries, maintenance services, property upgrades, or resale and rental support, TopPropMart is dedicated to providing exceptional after-sales service that exceeds your expectations. With us, you can confidently embrace your property ownership experience and enjoy peace of mind knowing that our team is always ready to assist you.
June 28, 2023
In the realm of real estate, brokerage fees have long been a significant concern for property buyers and sellers. However, with the emergence of innovative platforms like TopPropMart, you can now experience the convenience of zero brokerage transactions.
The Advantages of Zero Brokerage with TopPropMart:
1. Substantial Cost Savings:
One of the most appealing aspects of TopPropMart is the elimination of brokerage fees. By connecting buyers directly, the platform removes the need for intermediaries and allows you to save a significant amount of money. This frees up your budget for other important aspects of your property purchase, such as furnishing or renovations.
2. Transparent and Fair Transactions:
TopPropMart prioritizes transparency and fairness throughout the transaction process. This transparency builds trust and confidence, allowing you to make well-informed decisions without any hidden costs or surprises.
3. Extensive Property Choices:
TopPropMart boasts an extensive inventory of properties, ranging from residential to commercial spaces. The platform allows you to explore a wide range of options, filtering properties based on your preferences such as location, budget, and property type. With a diverse selection, you have a higher chance of finding the perfect property that meets your specific needs.
4. Efficient Communication and Collaboration:
With TopPropMart, The platform provides a user-friendly interface that facilitates direct interaction, allowing you to ask questions, schedule property visits, negotiate terms, and discuss all aspects of the transaction seamlessly.
TopPropMart's zero brokerage platform has revolutionized the real estate landscape, providing a cost-effective and transparent solution for property buyers and sellers. By eliminating brokerage fees and enabling direct communication, TopPropMart empowers individuals to make informed decisions and save substantial costs.
May 03, 2023
Gurugram sold 10% more houses in Jan-March, Noida slacks behind by 23%: Report
Gurugram, a premier residential market in Delhi-NCR, witnessed a 10% increase in house sales from January to March, whereas Noida and Greater Noida saw a 23% decline in demand, according to Anarock.
Sales of residences increased in Gurugram as a result of the high demand for luxury properties. Sales decreased in Noida-Greater Noida as a result of fewer new project launches, weaker demand, and rising mortgage rates and home costs, they noted. According to data from real estate consultant Anarock, home sales in Gurugram increased 10% from January to March of last year from 8,850 units to 9,750 units.
In the other parts of the Delhi-NCR market, such as Delhi and Ghaziabad, housing sales fell by 30% to 3,160 units from 4,490 units.
The number of homes sold in Gurugram climbed by 10% between January and March of last year, from 8,850 units to 9,750 units, according to data from real estate consultant Anarock.
Sales in Noida-Greater Noida fell by 23% to 4,250 units from 5,495 units.
Housing sales in the other areas of the Delhi-NCR market, including Delhi and Ghaziabad, decreased 30% to 3,160 units from 4,490 units.
In Delhi-NCR as a whole, house sales decreased from 18,835 units in the same time last year to 17,160 units in January-March.
According to Anarock Research Chief Prashant Thakur, "the underlying explanation for this decline seems to be the impacted incomes of the cheap sector home purchasers who have still to achieve the pre-COVID levels."
In Gurugram, there was a huge demand for high-end and luxurious apartments in the first quarter of this year, he continued.
Mohit Jain, MD of the real estate firm Krisumi Corporation, predicted that Gurugram's demand would continue to grow.
The residential market in Gurugram will continue to be attractive to investors and end-users because of its prime location, a flurry of infrastructure upgrades, and a growing millennial population, according to Jain.
According to real estate consultant Vishal Raheja, MD of InvestoXpert Nevertheless, he anticipated that this quarter's market in Noida and Greater Noida would improve because of many forthcoming releases.
Gurugram has a significant demand for luxury houses in particular due to infrastructural improvements and the presence of large firms, particularly IT/ITeS enterprises, claims Garvit Tiwari, co-founder of the NCR-based real estate brokerage firm Inframantra.
He claimed that reputable homebuilders have a limited number of properties available and that these are selling swiftly whenever they are published.
Anarock figures show that from 99,550 units in the same period last year to 1,13,770 units in January through March, housing sales grew across seven major citis by 14%.
During the first three months of this year, deterioration was limited to Delhi-NCR cities.
April 25, 2023
Home buying sentiment to weaken but new supply is kicking in say analysts
Analysts predict that real estate demand will drop down this year after a year of record-breaking sales in 2022. Despite the halt in interest rate increases this April, home loans have become more expensive in the past six months, which will begin to affect demand.
Due to the scale of home loans, where a single basis point increase in interest rates can set buyers back by a few lakhs, interest rates have a direct association to housing demand.
The Indian central bank raised interest rates six times, for a total increase of 250 basis points, since May of last year. The most recent monetary policy committee meeting's minutes show that the cycle of rate tightening is still ongoing.
Real estate developers have been starting new projects in the interim, encouraged by the pandemic-induced demand and declining inventory.
While the US/European recession and the IT slowdown are likely to have a negative influence on demand in the near future, the supply glut has not abated, according to analysts at Nuvama Institutional Equities.
According to a survey by CII-Anarock, the top 7 cities saw new launches totaling over 1.09 lakh units in Q1 2023 compared to 89,100 units in Q1 2022 and 92,900 units in Q4 2022. This is an increase of 18% from the previous quarter and 23% on an annual basis.
According to the research, the top seven cities are the National Capital Region, Mumbai Metropolitan Area, Bangalore, Chennai, Pune, Hyderabad, and Kolkata.
Impact on affordable housing
House loan rates have increased by about 9% as a result of interest rate hikes up to this point, and further increases may cause Indians to reconsider purchasing a home. Borrowers have run out of choices to extend the maturity of their loans while maintaining the same EMIs as a result of the continuous rate increases.
Yet, up to this point, banks and NBFCs have maintained the demand by providing discounted spreads on the benchmark rate. According to a report by HDFC Securities, the rate overhang may last for a few more quarters and is not expected to cease anytime soon.
According to analysts, the affordable segment is currently experiencing the most of the rate hike's effects, which could last for a few more quarters while the demand for luxury goods is still strong.
"Up to this time, the sector's core secular housing demand has not been impacted by the 250 basis point rate increase following the Covid ruling. The affordable section is beginning to show symptoms of weakening, though. This is in line with expectations because the loan eligibility for this group makes it the most vulnerable to rate changes, according to a report by HDFC Securities.
The term "affordable housing" refers to dwelling units having a square footage of 600 square feet or less that are accessible to those in society whose income is below the median household income.
The mid-segment homes priced between 40 lakh and 80 lakh rupees continue to dominate new supply, according to the CII-Anarock survey, holding a 36% share. Following this are the premium (between 80 lakh and 1.5 crore) with a 24% share and the cheap (under 40 lakh) with an 18% share.
Analysts predict that demand predictions for the premium or luxury market may not change, although that segment only consumes a third of the newly additional supply.
Sentiment suffers too
Homebuyer mood is being impacted by frequent layoffs at both major and small corporations, in addition to the impact of rising real estate prices as a result of input cost increases.
According to statistics from Layoffs.fyi, 16 firms lost all of its employees in 2023 due to a liquidity crisis, and three of these startups — WeTrade, Fipola, and DUX Education — were based in India.
Recent layoffs by both major and small corporations are probably going to affect demand in the next two quarters, which will slow the growth of the housing market. According to Anuj Puri, head of Anarock group, "many homebuyers afflicted by layoffs may postpone home purchases until their work situation stabilises."
Desire for expensive homes is still strong.
According to the CII Anarock research, "The Housing Market Boom," the two real estate hotspots NCR and MMR have experienced particularly significant momentum in the selling of expensive, larger properties over the last three quarters.
The paper highlights poll results that show 96% of respondents agree that increased home loan rates will have an impact on housing demand.
The NCR market, which experienced the greatest price appreciation this year, was driven by demand for luxury homes, according to a report by HDFC Securities. "Demand in the luxury category has remained robust and has been the driving reason for greater price realisation," the report stated.
According to Anarock statistics, the average property price across the top 7 cities rose between 6 and 9% in the first quarter of 2023 compared to the first quarter of 2022, primarily as a result of rising demand and the cost of construction-related raw materials.
April 26, 2023
Housing rentals surge by 4.1% QoQ as demand outstrips supply
With demand for rental homes progressively, home rents are increasingly rapidly in India’s top cities. The growing demand for rental homes in major cities has resulted in demand outstripping supply of rental homes and, as result, making them costlier over the last three months, latest data shows. According to data from online real estate marketplace Magicbricks, average house rentals in the top 13 markets increased dramatically over the prior quarter by a staggering 4.1% in the January-March quarter. In comparison to the December quarter, the average rent in cities like Gurugram, Noida, Hyderabad, and Mumbai increased by 8.2%, 5.1%, 4.9%, and 4.2%, respectively. 11 of the top 13 markets had sequential increases in rentals throughout the past quarter. Only in Thane and Ahmedabad were there slight drops in rent observed.
The recent demand-supply imbalance is mostly to blame for the steady rise in rental prices. Statistics indicates that during the January to March quarter, demand for rental homes remained much higher than the availability in 12 of the 13 cities. Although the largest growth in rental demand was seen in the IT centres of Chennai (14.3%), Bangalore (12.2%), Hyderabad (10.8%), and Pune (7.8%). Only in Greater Noida (-10.3%), Delhi (-1.8%), and Kolkata (-0.9%) did demand and supply fall at the same time. Only in Noida (-0.7%) did supply increase by 4.2% despite a decline in demand. Despite a decline in the demand for rental properties, rentals nevertheless increased by 5.1%.
According to macroeconomic trends, the Indian rental housing industry is showing signs of a strong recovery, and Sudhir Pai, CEO of Magicbricks, expects this to continue during the upcoming quarters. "Notable is the resilience displayed by large southern cities as they continue to draw in talent from all around the nation. Other significant cities with optimistic rent trends include Gurugram and Pune, which continue to draw a talented migrant workforce. These market characteristics all point to a rapid transition to a "business as usual situation" for the real estate sector and a sustained development trajectory for the Indian rental housing market."
In these 13 locations, rental home demand increased by 3.3% year over year, but supply actually decreased by a startling 18%, creating a general housing scarcity. Following previous quarters' trends, 2BHK units continue to dominate the market in terms of both supply and demand, with 42% of tenants looking for 2BHKs. 3BHKs and 1BHK are next, with 36% and 17% of the market share, respectively. The demand for 3BHKs climbed to 36% in Q1 2023 from 30% in Q4 2022, while the demand for 2BHKs decreased to 42% in this quarter from 47% in the previous quarter, indicating a preference for more roomy homes.
April 23, 2023
96% of potential buyers claim that a further increase in mortgage rates will affect their decision to purchase a home. CII-Anarock
According to a CII-Anarock survey, more than 95% of prospective homeowners believe that future increases in mortgage interest rates will have an impact on their decision to buy a property. The poll, which was conducted in conjunction by the industry group CII and the real estate consultant Anarock, attracted 4,662 respondents in total. The fifth CII Real Estate Confluence 2023 in Mumbai saw the release of the research titled "The Housing Market Boom."
"The demand for homes will be impacted by additional increases in house loan rates, according to 96% of questioned purchasers. Future house purchases will be impacted by higher mortgage rates, "In a statement, Anarock stated.
Contrary to what the market anticipated, the RBI maintained the repo rate in its most recent monetary policy.
Price continues to be a significant consideration for more than 80% of those looking to purchase a home since, in addition to home loan interest rates, the cost of land has increased over the past year.
The survey found, among other things, that demand for larger homes has not abated, with 42% of participants preferring 3BHK, 40% 2BHK, 12% 1BHK, and 6% looking for homes with more than 3BHK in arrangement.
Anuj Puri, chairman of Anarock, said: "Rate increases are but one aspect of the overall demand situation. Recent layoffs by both major and small corporations are probably going to affect demand in the next two quarters to some extent and slow the expansion of the housing market."
"Many homebuyers who have been affected by layoffs might postpone their decisions to buy homes until their work situation improves. Nevertheless, everyone's top priority continues to be purchasing a home "Added he.
According to him, the current high level of inflation and the state of the global economy both have an effect on the demand for houses in India.
According to Puri, there are excellent chances that the current turmoil will have subsided by FY25 and the home market will have recovered. Demand that is deferred is simply deferred; it is not cancelled.
The report also revealed that millennials are still the main drivers of home demand.
At least 52% of participants overall who selected real estate as an asset class for investment were millennials, who are mostly wanting to acquire homes for their own use. The end-user vs. investor ratio on the Indian housing market remains 71:29, favouring end-users. Around 77% of the end users that were surveyed as a whole are millennials.
The purchasers questioned are currently focused on three main factors in addition to price points and basic amenities in a project: certainty of a fast project completion, the availability of a study area, and suitable ventilation in the property.
A study space is seen to be absolutely necessary by another 55% of poll participants, 62% of whom are adamant about their homes being well-ventilated. Nearly 90% of respondents said they will not compromise on timely project completion.
April 21, 2023
Co-Working Share Rises To 27%, South Cities Top Demand.
The real estate industry is constantly evolving and adapting to the changing needs of businesses and individuals. One trend that has gained significant popularity in recent years is the concept of co-working spaces. According to a report by Anarock Property Consultants, the demand for co-working spaces in India has increased by 42% in the first quarter of 2022, as compared to the same period last year.
The report also highlights that the co-working industry has witnessed a rapid transformation in terms of the nature of demand, with large corporates and SMEs now accounting for a significant portion of the demand for co-working spaces. Additionally, the report suggests that the pandemic-induced remote work culture has accelerated the growth of the co-working industry, as more and more people seek out flexible workspaces that offer a blend of privacy and socialization.
The report further states that cities such as Bangalore, Delhi-NCR, and Mumbai continue to be the major markets for co-working spaces in India. However, smaller cities such as Pune, Ahmedabad, and Hyderabad have also witnessed a significant increase in demand for co-working spaces.
Furthermore, the report indicates that the co-working industry is expected to continue to grow at a rapid pace, with the total co-working stock in India projected to reach 85 million sq ft by 2025.
The rise of co-working spaces is a reflection of the changing dynamics of the workplace. With an increasing number of people seeking flexibility and work-life balance, co-working spaces have emerged as a viable alternative to traditional office spaces. The industry has also provided an opportunity for real estate developers to monetize their underutilized spaces, leading to a win-win situation for all stakeholders involved.
In conclusion, the co-working industry in India is growing rapidly and is expected to continue to do so in the coming years. As businesses and individuals seek out flexible workspaces, co-working spaces are likely to become an integral part of the real estate landscape in India.
April 18, 2023
Supertech settles 32 recovery certificates issued by UP-RERA, wants cases stopped
Supertech, a significant player in the real estate industry, has notified the administration that it has paid 32 recovery certificates issued by UP-Rera for Rs 7.6 crore. Furthermore, it claimed to have given the administration Rs 3 crore.
Supertech stated in a letter that it was making every attempt to amicably resolve any outstanding issues with the allottees by providing them with substitute units or other amenities. It requested that the administration halt the RC actions being taken against it.
RK Arora, the chairperson of Supertech, was summoned to the SDM's office in Dadri on May 8 in relation to 52 RCs issued by Rera for a total of Rs 26 crore. This has to do with the residential development known as Gold Country, which is located in Sector 22D of the Yamuna Authority region.
The developer had 2,000 apartments in mind when work on the project got underway in 2012. But, a few farmers and landowners petitioned the Allahabad high court and obtained a halt to the land distribution.
Supertech only provided about 1,000 apartments. After an approach by the purchasers of the other apartments, Rera issued RCs against the developer.
Supertech claimed that circumstances beyond of "the control of them company" were to blame for the delay in delivering the apartments in a two-page letter to the district court on Friday.
The letter stated that "the construction activity was not carried out in the absence of any amicable solution to the difficulties."
We have been communicating in writing with the Yamuna Authority to address their concerns and secure our ability to proceed with construction without interference, the statement continued.
According to Supertech chairperson Arora, the business is not to blame for the delay in the delivery of apartments. "We are contacting UP-Rera once more about recalling the RCs. Rera has begun deliberating over our requests. We have also asked the district government to halt the RCs' recovery actions since we are prepared to deliver and amicably settle with the other allottees.
According to Vandita Srivastava, ADM (finance), "Supertech has sent a letter to the administration. The decision to halt the RC procedures has not yet been made. We will comply if Rera recalls certain RCs and notifies us.
April 16, 2023
Gurugram: DTCP warns builders of strict action over construction of offices at building sites
The Department of Town and Country Planning (DTCP) in Gurugram, India, has issued a stern warning to builders regarding the construction of offices at building sites. The DTCP has expressed concern over the increasing trend of builders utilizing approved spaces for commercial purposes, which goes against the approved plans and disrupts planned infrastructure development.
According to the department, site offices are functioning against the rules, which are costing the company money. On Sunday, the district town planner's office (planning) issued recommendations to about 50 developers for not getting consent before establishing site offices.
"The DTCP finalised the terms and circumstances for requesting for a change in land use in order to set up temporary site offices close to projects that are still under construction in July 2022. Nonetheless, the majority of the city's developers set up site offices without permission and in breach of the rules, costing the state exchequer money "a senior DTCP representative remarked.
This is against the 2017 Haryana Building Code. A number of projects are being built by developers in the categories of commercial projects, group housing societies, affordable housing societies, DDJAY, planned licenced colonies, and other projects, and they have established site offices.
The Town and Country Planning Department's administrative centre has published rules defining the requirements for temporary site offices during project construction. The local DTP representatives should see to it that builders obtain permission to erect these offices.
The local DTP office is where developers can apply for approval and submit project-related documentation, according to officials. The report will be referred to higher authorities for final clearance after departmental review of the papers.
The authorization for the site office will be good for five years, with an option for an additional five years.
After receiving approval, the office must be built within two years, at which point an occupation certificate will be given. The office can only be utilised after obtaining OC, and it must be taken down once the project is finished.
DTP (planning) Rajesh Kaushik stated that a team has been formed that will visit the project sites and take appropriate action against the corporation if site offices are discovered to be operating without license.
April 14, 2023
Flat buyers will face 18% GST on open car parks' sale: AAAR
The sale or right to use a parking lot is not inherently packaged with construction services, according to the West Bengal bench of the Appellate Authority of Advance Rulings (AAAR), which upheld an earlier decision. As a result, it won't be considered a composite supply and will be subject to GST at the higher rate of 18%.
Eden Real Estates, which is involved in the building of residential units, appealed the AAAR's decision.
Beginning April 1, 2019, non-affordable housing projects without input tax credits will be subject to a 5% GST (ITC). The builder has the option to pay GST at the previous rate of 12% with ITC for ongoing projects (like this one), meaning taxes spent on inputs can be offset. If the AAAR had viewed the transaction involving the parking lot as a composite supply, the GST levied would have applied would have been the lower primary supply of construction levied.
The effect of this decision, according to Anita Rastogi, principal (indirect taxation) at Price Waterhouse-India, is that purchasing residences with parking spaces will be more expensive.
"Although advance rulings are only enforceable against the parties involved in the transaction for which the judgement was requested, tax authorities frequently depend on rulings that are in the department's favour. Litigation follows if the taxpayer (in this case, a builder) used a different strategy. As a result, some builders can take a cautious stance and charge 18% GST for the parking space.
In this instance, the real estate developer claimed that the parking space was only provided to flat purchasers and that stamp duty had already been paid on the full amount they were charged (that is, price of the apartment and the car parking space).
The AAAR bench did note, however, that potential apartment purchasers may or may not choose a parking space when booking their apartment. Hence, the claim that the right to use an open parking spot is a composite supply that is inextricably linked to building services fails.
Additionally, since the buyer of the apartment only receives the "right to use" the available parking space, it is a completely different service.
The bench further noted that under RERA, an open parking space is not included in the definition of a garage. The arguments centered mostly on open automobile parking spaces.
April 14, 2023
Trident Group acquires Shipra Mall in Ghaziabad for Rs 551 crore via auction
Trident Group, a real estate developer, announced on Friday that it has purchased Shipra Mall in Ghaziabad for Rs 551 crore through an auction process. The purchase of Shipra Mall at Indirapuram in Ghaziabad, Uttar Pradesh, by Trident Group, which is developing projects in Delhi-NCR, Mumbai, and Tri-city (Panchkula), marks the company's entry into the retail real estate sector. The mall has a floor area of 4.5 lakh square feet.
"For Rs 551 crore, we paid for the Shipra Mall at an auction held in accordance with the SARFAESI Act (Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act). The lenders for Shipra Mall, Indiabulls Housing Finance and Edelweiss Asset Reconstruction Company, organised the auction "said Singh to PTI.
According to him, the property has been registered and the corporation has paid stamp duty and registration fees totaling Rs 44 crore.
"Indirapuram, Vaishali, Vasundhara, Ghaziabad, and East Delhi are all served by the mall. 3.5 lakh square feet of the total 4.5 lakh square feet have already been leased "The Company is in the process of obtaining physical ownership of this mall from Indiabulls Housing Finance, he continued, adding that.
After the mall is fully leased, Singh stated that the business anticipates earning a rental income of Rs 60 crore yearly.
"The group has a clear plan to concentrate on vertical residential development in intrinsic and deep-demand sectors and horizontal residential development in Tier-II markets. Additionally, given that India's expanding consumption trends create chances for long-term growth; we have been investigating opportunities in the retail real estate sector "Said Singh.
The Delhi-based Trident Group, which was founded in 2008, has provided more than 20.34 million square feet of residential and commercial space. The residential, retail, hospitality, and commercial sectors are all in various phases of construction on an area of about 13 million square feet.
April 12, 2023
The State of the Real Estate Sector in India: A Promising Outlook
The real estate sector in India has been a significant driver of economic growth and a crucial contributor to the country's GDP. With its multi-faceted nature, the sector plays a vital role in providing housing, infrastructure, and employment opportunities. In this blog, we will explore the current state of the real estate sector in India and delve into the factors shaping its promising outlook.
Recovery from the Pandemic:
The COVID-19 pandemic had a substantial impact on various industries, including real estate. However, the sector has shown resilience and has been gradually recovering. The government's initiatives and economic stimulus packages have played a pivotal role in reviving the industry. As vaccination efforts progress and economic activities resume, the real estate sector is expected to regain its momentum.
The Indian government has implemented several measures to bolster the real estate sector. Initiatives such as the Pradhan Mantri Awas Yojana (PMAY) and the Smart Cities Mission have propelled affordable housing and urban development. Additionally, the Real Estate (Regulation and Development) Act, 2016 (RERA) has brought transparency, accountability, and consumer protection, instilling confidence among homebuyers.
The demand for affordable housing in India has been steadily increasing, driven by the government's focus on this segment. Affordable housing projects, coupled with various tax incentives and subsidies, have made homeownership more accessible to the middle and lower-income groups. This has not only addressed the housing shortage but also boosted employment and stimulated economic growth.
Rise of Co-working Spaces:
The concept of co-working spaces has gained immense popularity in recent years. With the rise of startups, freelancers, and the gig economy, co-working spaces offer flexibility, cost-effectiveness, and a collaborative work environment. This trend has transformed the commercial real estate landscape, leading to the emergence of shared office spaces in major cities across India.
Technological advancements have revolutionized the real estate sector, improving operational efficiency and customer experience. The adoption of virtual reality, artificial intelligence, and big data analytics has streamlined various processes, such as property search, project management, and customer engagement. These technologies have not only enhanced transparency but also empowered buyers and investors with comprehensive information.
The Indian government's focus on infrastructure development has had a positive impact on the real estate sector. Initiatives like the development of dedicated freight corridors, metro rail projects, and smart cities have not only improved connectivity but also spurred real estate investments. Infrastructure projects have acted as catalysts for economic growth, attracting investments and driving demand for commercial and residential properties.
Sustainable and Green Buildings:
With increasing environmental concerns, sustainable and green buildings have gained prominence in the real estate sector. Developers are incorporating energy-efficient designs, renewable energy sources, and eco-friendly materials to reduce the environmental impact of buildings. The adoption of green building practices not only benefits the environment but also enhances the market value and appeal of properties.
The real estate sector in India is witnessing a promising outlook, driven by government initiatives, technology adoption, and a focus on affordable housing and infrastructure development. While challenges such as regulatory compliance and financing constraints persist, the sector's resilience and adaptability bode well for its future growth. As the country moves forward with its economic recovery, the real estate sector is expected to play a pivotal role in driving investment, creating employment opportunities, and fulfilling the housing needs of millions of Indians.
April 10, 2023
Godrej Properties on land-buying spree for housing projects; to acquire Rs 15k-cr projects in FY24
Godrej Properties, one of India's leading real estate developers, has announced its plans to acquire land for housing projects worth Rs 15,000 crore in the fiscal year 2023-24. The company aims to expand its presence in key markets across India through strategic land acquisitions.
Pirojsha Godrej, the Executive Chairman of Godrej Properties, stated that the company has already identified potential land parcels for acquisition and expects to close the deals over the next few months. The company's land acquisition spree comes after a successful financial quarter that ended in March 2023, with a 68% increase in its consolidated net profit.
Godrej Properties has a history of developing innovative and sustainable projects in prime locations across India. The company has also been at the forefront of adopting new technologies and construction practices to create world-class projects.
When questioned about the FY24 projection for new business growth, which includes joint development agreements (JDAs) with landowners and outright land purchases, he responded that it has been set at Rs 15,000 crore for this fiscal year.
Pirojsha asserted that the business might easily reach bigger levels.
On the justifications for lowering the goal for the establishment of new businesses, Pirojsha stated, "The previous year was particularly good. These numbers won't always be present every year."
However, he added: "Even adding new projects costing Rs 30,000 crore year is not something we want to do. We don't truly need to add new projects of Rs 30,000 crore in order to reach sales bookings of Rs 14,000 crore in a year."
According to Pirojsha Godrej, the business is in talks with other landowners in important cities about making outright purchases as well as signing JDAs.
Regarding the performance over the previous fiscal year, he emphasised that it was very robust in terms of all crucial measures, including sale bookings, customer cash collections, project completion, and new business development.
According to him, practically all of the Rs 12,232 crore in sale bookings, up 56% from the previous year, was for residential properties.
During the previous fiscal year, cash receipts increased by 41% to Rs 8,991 crore, and project deliveries reached a record 10 million square feet.
18 new projects were added by Godrej Properties in FY23, totaling an estimated almost 29 million square feet of saleable space.
One of the high-profile transactions in FY23 saw the business pay Rs 750 crore to purchase an 18-acre plot of land in Kandivali, Mumbai, with plans to build a luxury home complex with a potential market value of nearly Rs 7,000 crore.
Pirojsha stated that the corporation has set a target of Rs 14,000 crore in sale bookings for the current fiscal.
According to him, the current fiscal year's cash collection goal is Rs 10,000 crore, and project deliveries will increase to 12.5 million square feet.
When asked about the market, Pirojsha stated that despite an increase in house loan interest rates, the rebound in the real estate industry following the second wave of the COVID pandemic has been quite successful.
In terms of sales volumes and pricing, Pirojsha remarked that the Delhi-NCR region has been functioning quite well.
He claimed that the business intended to launch more projects in Delhi, Noida, and Gurugram to capitalise on this.
One of the top real estate developers in the nation is Godrej Properties, a division of the commercial behemoth Godrej Group. For the development of residential projects, it primarily focuses on the Delhi-NCR, the Mumbai Metropolitan Region, Bangalore, and Pune.
The company's net profit climbed to Rs 571.39 crore during the entire 2022–23 fiscal year from Rs 352.37 crore the previous year.
The total income increased from Rs 2,585.69 crore in 2021–2022 to Rs 3,039 crore in the most recent fiscal year.
April 07, 2023
Gurugram: Audit to check structural flaws in 15 highrise societies in second phase
Deputy Commissioner Nishant Yadav ordered structural evaluations of 15 housing developments in the city as part of the second phase of an exercise that was carried out following the vertical collapse of apartments in Chintels Paradiso last year. The 60 projects whose inhabitants and RWAs have complained about poor construction and structural flaws during the previous two years will be used to choose the societies.
The majority of buildings, including those constructed by well-known real estate companies, are found along the Dwarka Expressway and the Southern Peripheral Road.
The district town planner has been asked to conduct a preliminary visual survey of all 60 societies to identify the 15 most crucial ones where structural audits should be completed as soon as possible, according to Yadav, keeping in mind the seriousness of the situation and the greater public interest. An on-site inspection of the structures will be part of the procedure to look for any obvious flaws as well as indicators of degradation and damage to the slabs, columns, and beams.
After a sixth-story apartment at Chintels Paradiso in Sector 109 collapsed on 10 February and caused a vertical fall of floors up to the first level, the first phase of the audit—which also involved 15 societies—was ordered in August 2022. The building's structural flaws were later held responsible for the cave-in that claimed the lives of two ladies. The audits were conducted in September by four organisations, Bureau Vertias, TPC Technical Projects Consultants, Vintech Consultants, and NNC Design International. The agencies were chosen by the district administration, and their reports highlighted a number of shortcomings. The most significant of these included plaster peeling, steel corrosion, and basement flooding and seepage. However, the authorities determined that the problems were "repairable".
Societies like Mapsko Casabella in Sector 82, Park Place in DLF-5, and Paras Irene in Sector 70A were among those included in the first phase.
After choosing a new group of 15 societies, DTP Manish Yadav will write to the RWAs and request that they hire the agencies that the district administration has appointed to do the audits, or a consultant of their choosing.
The RWA/residents and the developer will each be required to contribute equally to the cost of the audits. The deputy commissioner stated that the developer would be responsible for covering the entire expense if the RWA's complaint regarding the deficiency was determined to be true.
The auditing procedure will resemble the first stage.
Since the enforcement division of the department of town and country planning (DTCP) is understaffed, the government also intends to include representatives from the planning division and the PWD. This, according to officials, will guarantee that the exercise is finished within a specific time range.
April 04, 2023
Noida: UPPCB imposes Rs 76.5 crore fine on 38 builders for illegal groundwater extraction
NOIDA: For illegally drawing groundwater from borewells, 38 builders were fined a total of Rs. 76.5 crore by the Uttar Pradesh Pollution Control Board (UPPCB). During 15 days, the builders must deposit the money.
According to officials, the board fined the Gaur City 2 project the maximum amount of Rs 6.6 crore and the Gaur City 1 project a maximum of Rs 4 crore. The Galaxy Blue Sapphire and Ace Divino projects are closely behind with fines of Rs 3.6 crore and Rs 3.3 crore, respectively. Ajnara Homes, Apex Golf Avenue, and Ajnara Le Garden will also pay fines of Rs. 1.8 crore, Rs. 1.1 crore, and Rs. 1 crore, respectively.
In July 2022, in response to a petition from two environmentalists alleging that 63 residential projects in Greater Noida and Greater Noida West were illegally extracting groundwater, the National Green Tribunal (NGT) established a district-level joint committee made up of the district magistrate and representatives from the state and central pollution control boards.
The committee conducted a two-phase screening of all the projects and discovered borewells at 41 of them. Among these 41 projects, only three were permitted to use groundwater; the other 38 were not.
The UPPCB then addressed letters to 38 builders requesting that they contribute 0.5% of the project cost as environmental compensation, but they never heard back. The board has thus sent notifications to 38 builders this month instructing them to pay a Rs 76.5 crore fine within 15 days.
"We have already notified the builders of the penalties we have imposed. Within 15 days of receiving the notice, they must pay the fine "said Radhe Shyam, regional officer for the UPPCB.
The UPPCB also submitted an action-taken report with the NGT, informing it of the penalties levied on the builders, during a hearing in the case on May 15. In July, the case's next hearing will take place.
Additionally, the UPPCB has taken legal action against 29 projects under the Water (Prevention and Control of Pollution) Act of 1974, and the builders involved have been given show-cause notices.
March 29, 2023
Luxury real estate in India is booming, with posh neighborhoods, spectacular views, and heated infinity swimming pools.
In February, an image went viral showing a large crowd gathered at the office of real estate developer DLF after the launch of a new project. The rush was to purchase a flat in that project, which was priced at 7 crore. DLF confirmed last week that it had sold 1,137 such projects in its Gurgaon unit.
This is not a one-time occurrence. According to Knight Frank data, the average value of properties registered in Mumbai in February 2023 was 1.9 crore, which is 65% more than the average value of properties registered in February 2022, which was 1.18 crore.
The demand for luxury housing in India has recently been extremely high. There is nothing that money cannot buy when it comes to luxury housing. Think heated pools and spas, community gardens where you can grow your own herbs and veggies, a 24x7 clubhouse with pool tables, games, a business centre and a coffee bar, a fitness centre with high end cardio and strength training equipment.
"If we define 2 crore and above as the general reference point for luxury housing, there was an offtake of nearly 6,000 units in the top seven cities in the last quarter with a gross sales value of nearly 22,000 crore." There has been a new supply of approximately 12,800 units in the top seven cities during this time period.
In terms of sales share, the Mumbai Metropolitan Region (MMR) and National Capital Region (NCR) are at the top of the list, accounting for more than half of the total. This is followed by Bangalore and Pune, which have a 20% and 15% market share, respectively. In the luxury segment, Hyderabad and Ahmedabad had less than a 10% share. "Demand for luxury housing in India has recently increased." The expansion of the Indian economy, which has created a new class of wealthy individuals with high purchasing power, is one of the primary reasons for this. They are willing to invest in premium living spaces that provide exclusive amenities, first-rate services, and cutting-edge facilities," says Anuj Puri, chairman of Anarock Group, a real estate services firm.
Another reason for the increased demand for luxury housing in India is the urban population's changing lifestyles and aspirations. "Many people are seeking a luxurious and comfortable living experience, which has led to an increase in demand for high-end residential properties with a variety of amenities, such as swimming pools, fitness centres, and spas."
The Covid-19 pandemic has also increased the demand for luxury housing in India. The pandemic has influenced how people live and work, with many people seeking larger homes with more space to accommodate work-from-home arrangements and other lifestyle changes.
The government's recent move in the Union Budget 2023-24, which will go into effect in April 2023, could be a major factor in high sales of high-priced homes in Mumbai and other major cities.
If a person sells a house or other assets, including equities, and his or her gains exceed 10 crore, the maximum benefit that he or she can receive when investing in another property is only up to 10 crore. Capital gains of more than ten crore rupees will be taxed beginning in April 2023.
"As a result, high net worth individuals (HNIs) across top cities, including Mumbai, are rushing to close luxury housing deals before the fiscal year ends in March," says Puri.
"In the context of India, luxury properties typically refer to high-end residential properties that offer a variety of amenities and features." These properties are in prime locations, upmarket neighborhoods, or central business districts, and are designed with a focus on providing a luxurious and comfortable living experience to their residents," says Amit Goyal, CEO of the luxury estate brand Sotheby's International Realty in India.
There is no single definition of luxury housing, and it varies by city, depending on the local real estate market.
"For example, luxury housing in Mumbai may refer to high-rise apartments with ocean views, whereas luxury housing in Delhi may refer to large villas with private gardens and swimming pools." Similarly, luxury housing in Bangalore may include gated communities with world-class sports facilities and spas," Puri says.
March 29, 2023
Uttar Pradesh identifies sites for rental housing scheme in 27 towns
The state government plans to resurrect the affordable rental housing scheme for people from economically disadvantaged backgrounds.
The urban development department identified 27 towns in Uttar Pradesh where housing units will be provided to skilled and unskilled laborers who are forced to live in slums or roadside shanties.
Individuals with a monthly income of less than Rs 25,000 will be eligible for rental housing, with the local administration and urban body having the option of redefining the income criteria based on local dynamics.
Local governments have been asked to conduct surveys to determine whether affordable housing is required to improve the living conditions of the urban poor.
The properties will be offered to the interested party on a 25-year concession period. "The national average monthly rent for a single room unit is Rs 3,000" said an officer. As part of the PM Awas Yojana, the state government launched a survey to establish affordable rental housing complexes in 100 cities across Uttar Pradesh.
Neha Sharma, director of urban local bodies, stated that the state urban development authority will assist local bodies in identifying sites and existing housing projects that can be retrofitted to be suitable for urban poor housing.
March 26, 2023
Apartment Living is better for Kids
With property and individual home prices skyrocketing, it has become extremely difficult to purchase an individual house. Furthermore, individual dwellings come with a slew of additional costs such as maintenance, security, and a slew of others that you may be unaware of.
Most importantly, living in a single-parent household can make it difficult for your children to adjust. They might not be able to find other kids their age, enough open space to play in, or fun activities to participate in.
However, if you move to a flat, your children will be able to reap all of these benefits while also growing well. In this article, we will show you why moving to an apartment is better for your kids and you.
Many Kids of the Same Age Group
When you live in a single family home, it can be difficult for your children to find other children their age who share similar interests. They will almost certainly be forced to interact with children and teenagers of various ages. As a result, your child may never consider them peers and form genuine bonds with them.
After all, forming genuine bonds with children of similar ages is much easier for your children and takes a lot of weight off their shoulders.
When you live in a flat, you are part of a close-knit community. Hundreds of families may live in hundreds of flats in society's flat complexes.
It will make it easier for your children to find children their own age and form friendships with them without hesitation. This allows your children to socialise, make new friends to play with, and be happier.
Separate Play Area for Kids
"All work and no play makes Jack a dull boy," you've probably heard many times in your life.
If your children do not get to play and have fun with their friends, their lives will be extremely boring. Without dedicated playtime, they will be uninterested in their studies and daily activities.
However, in today's concrete jungle, finding an open area to play with other kids is difficult, especially if you live in a single-family home in a major city.
Fortunately, most apartments have designated play areas for children. It allows your children to play a variety of games with their peers and have fun without inhibitions. Play areas, whether for cricket, football, badminton, or other games, provide enough space for your children to enjoy their favourite games.
Living in a flat with designated play areas benefits your children in a variety of ways, including the following:
1. Improved physical and mental growth rate
2 Improved social abilities
3 Less reliance on mobile phones, tablets, and other electronic devices for gaming
So, if at all possible, you should move to a flat as soon as possible to help your children develop in a healthy manner.
Every parent wants their children to grow up in a safe environment with plenty of opportunities. However, unless you are fortunate, finding a suitable environment for your children's growth while living in an individual house is difficult. It will, in the end, prevent your children from reaching their full potential.
That is why you should consider moving to a flat in a gated community, which will allow your children to grow both physically and emotionally.
As previously stated, gated communities allow your children to play with other children their age. Furthermore, such communities have designated play areas and enhanced security, allowing your children to have fun while growing safely.
A gated community provides the following essential features:
1. Reliable safety features such as CCTV, intercom, and dedicated security guards ensure your child's safety while playing or participating in any activity.
2, Outdoor play areas, children's clubs, indoor play areas, and a variety of gaming tools promote active play and socialisation.
Do you want such advantages for your child? Then you should relocate as soon as possible to a flat in a gated community.
More Security for Kids
CCTV and other surveillance features are typically used to monitor gated communities around the clock. Societies also have security guards patrolling the community grounds and dedicated individuals guarding the gate to ensure that no children leave the property.
They have well-planned driveways and strict driving rules in place to ensure that no accidents occur while the children are playing on the community roads. Rooftops, corridors, and other common areas are usually well-lit, secure, and easily accessible at all times.
Even children's play areas have strong security and safety features to ensure that no child is injured. Even if an accident occurs, they make certain that the injured children receive first-aid treatment as soon as possible.
These features are not available if you live in a single-family home. Moving to an apartment would be a wise choice if you want your children to grow up in a safe environment.
Regular Events That Help in Kids’ Mental Growth
Moving to a flat allows you to live in a community where everyone knows each other and where many festivals are held. Whether it's Christmas, Diwali, Children's Day, or any other holiday, gated communities almost always organise various events to help both adults and children socialise with one another.
These events can broaden your children's horizons, help them learn new things, and allow them to socialise with people of various ages, all of which is beneficial to their mental development.
Helping your children grow in a healthy environment is more than enough reason to relocate.
Wrapping It Up
Living in an apartment is like living inside a joint family that gives a lot of freedom with no strings attached. Your family enjoys much privacy and still has a sense of community living. But most importantly, it helps your kids grow in a healthy way, both mentally and physically. As you can see, living in an apartment comes with a lot of benefits. So, weigh your options today to make a decision for your kids’ sake.
March 26, 2023
Uttar Prdesh PWD minister promises to resolve builder-buyer issues in Noida
Brijesh Singh, the state minister for public works, delivered the government's six-year report card on Saturday in Noida. Singh, who is also in charge of Gautam Budh Nagar, stated that he would try to resolve builder-buyer and farmer issues, as well as provide good treatment facilities at the district hospital.
According to the minister, MoUs worth Rs 35 lakh crore were signed at the UP Global Investor Summit in February 2023, with GB Nagar receiving Rs 9 lakh crore.
"The state's government has declared zero tolerance for crime. The government established a commissionerate system in Noida and other cities, and it has worked to improve farmer and women's welfare, among other things. We will also address local issues affecting farmers and homebuyers "He went on to say.
GB Nagar MP Mahesh Sharma, Noida MLA Pankaj Singh, Jewar MLA Tejpal Nagar, and Dadri MLA Dhirendra Singh joined the minister. They first attended chief minister Yogi Adityanath’s programme in Lucknow, celebrating six years of government and one year in the second term, through video conference and interacted with the media at Indira Gandhi Kala Kendra in Noida's Sector 6.
March 25, 2023
Deloitte inks one million sq ft of office lease in Bengaluru
Deloitte, a Big Four firm, has signed agreements with Prestige Group and Salarpuria to secure three office spaces totaling one million square feet in order to expand its Bengaluru operations.
The company has leased approximately 500,000 square feet of office space at Prestige Tech Park on the Outer Ring Road, as well as over 460,000 square feet in SalarpuriaAura and Eminence in Bengaluru.
"The new office leases can house 9,000 employees with a lock-in period of five years and an option to renew for an additional five years for the next two years," said two people aware of these deals.
A questionnaire sent to Deloitte received no response as of press time.
Over the last three years, Deloitte has hired nearly 50,000 professionals, nearly doubling its headcount in India.
The company intends to continue investing in people and productive capacities in India in order to support education, digital skills development, and training opportunities.
"Despite the uncertainty in the office market, the office sector is poised for growth in 2023, assuming the economic environment remains favourable. Even in the most pessimistic scenario, we do not expect leasing numbers to fall below peak pandemic levels "Colliers India MD Peush Jain stated.
Since the beginning of 2023, the India office leasing market has slowed and is expected to pick up in the second half of the year, led by global capability centres, BFSIcompanies, and startups with sound business models.
According to a Colliers-Ficci joint report, India's office sector is likely to see 35-38 million sq ft of gross leasing in 2023, with economic headwinds expected to ease by Q2 2022 and larger occupiers re-examining leasing decisions that were put on hold temporarily.
March 25, 2023
GNIDA issues RCs worth over Rs 23 crore against two builders over dues
The Greater Noida Industrial Development Authority issued recovery certificates totaling Rs 23.39 crore on Wednesday against two real estate developers for non-payment of dues dating back a decade, officials said. GNIDA CEO Ritu Maheshwari stated that those who have not paid their bills will face severe consequences.
Any land allottee will not be spared if they do not complete the project for which they were given the land or do not pay their dues to the authority. The action will range from issuing recovery certificates (RCs) to cancelling land allotments, according to an official statement, Maheshwari stated.
The Greater Noida Industrial Development Authority (GNIDA) issued RCs worth Rs 23.39 crore against developers Assotech Realty and AVJ Homes, according to Additional CEO Aditi Singh.
“In 2005, Assotech Realty was granted a plot of approximately 29,623 square metres in Sector Zeta One (Number GH-10). The builder has completed the project but has not yet paid the GNIDA dues in full. The builder has not paid since 2012 and owes approximately Rs 13.39 crore in premium and additional compensation "Singh stated.
"AVJ Developers has been served with the second RC. In 2009, AVJ Developers was also given a plot of approximately 4,473 square metres in Sector Beta II (No 90). Approximately Rs 10 crore is owed for the premium on this plot. Since 2013, the builder has not made any payments "According to the ACEO.
She stated that despite several notices, the GNIDA was forced to take this action due to nonpayment of dues.
Both RCs have been sent to the Collector for debt recovery, she added.
March 24, 2023
Sobha shares plunge 4% as Income Tax department raids premises
Sobha Ltd shares fell more than 4% in intraday trade on the NSE on Wednesday after the company said the income tax department raided its registered office and other premises.
Around 9:40 a.m., the stock was trading at Rs 498, down Rs 21.
"We would like to inform you that the Income Tax Department is conducting a search at Sobha Limited's registered office and other premises." Furthermore, as a responsible company, all of the Company's concerned employees/staff are extending their full cooperation to the Officials," the company stated in its exchange filing.
Sobha's stock has been on a downward trend for the past four trading sessions, including today, and has fallen nearly 9% in that time.
Over the past year, the stock has underperformed the Nifty50 index, returning a negative 33% while the benchmark fell by 0.2%. The stock is down from its 52-week high of Rs 764 set in March 2022. The 52-week low is Rs 480.20, which it reached on June 20, 2022.
In early trade, Sobha was one of three stocks in the 10-share Nifty Realty index that were trading in the red. Godrej Properties and Brigade Enterprises were the other two declining counters.
The Nifty Realty index, which tracked overall market optimism, was trading at 396.45, up 1.75 points or 0.44%. Oberoi Realty, The Phoenix Mills, and Macrotech Developers were the top gainers.
Meanwhile, the S&P BSE Sensex and Nifty50 were trading in the green around the same time. The former was up 217.08 points or 0.37% at 58,291.76, while the latter was up 71 points or 0.42% at 17,178.70.
March 21, 2023
Noida: Details like OC, CC of housing projects now available online
Officials announced on Monday that people can now check details like completion certificate, occupancy certificate, number of flats, or pending dues of any group housing project in Noida online.
The details can be found on the Noida Authority's website, www.noidaauthorityonline.in, under the heading 'Group Housing Builder Projects Information,' they said.
Prasun Dwivedi, Noida Authority's officer on special duty (Group Housing), statedthat the section was added to the website on Monday and is intended to promote transparency and e-governance in the public interest.
"The complete details of the projects of group housing such as project-wise OC and CC, pending dues, updated status of sub lease documents, total sanctioned flats, etc. have been displayed live on the official website to make the general public aware about the housing projects," Dwivedi said.
He stated that the general public can use the information about housing projects to buy and sell flats based on their needs.
According to Dwivedi, "We had received feedback from many people who felt the need for such a mechanism to assist them. This system for real-time updates on housing projects has been in the works for a few months."
"The system went live today, and we will continue to improve it to improve the user experience. It may not be completely accurate right now, but it will be constantly improved in the coming days, and details will be updated on a regular basis "The OSD was added.
March 16, 2023
Builders have to submit structural audit reports for OC from April 1 in Noida
The Noida Authority's structural audit policy will go into effect on April 1, making it mandatory for developers to seek occupancy certificates for new or delayed projects after having their buildings structurally vetted by an institute accredited by the Noida Authority and creating a framework for homebuyers to seek quick redress on complaints about structural defects in existing buildings.
"Starting April 1, the structural audit report obtained from one of the empanelled agencies will be mandatory with the online application for partial or full OC," said senior manager (planning) Devendra Nigam. The developer will receive the OC if the towers and society are safe from all angles."
Officials stated that if at least 25% of a building's occupants support an audit, the Authority can be approached immediately. A committee led by another CEO-level officer would then investigate their complaint and determine whether the flaw is minor or major. For a major defect, depending on the time since the issuance of the OC, the developer or the AOA will be responsible for engaging an agency for a structural audit and repair.
"After getting the OC, the builder will be responsible for structural audits for the next five years and rectifying the deficiencies found in the structural audits during this period. After five years, it will be the AOA's responsibility," Nigam explained.
The Noida Authority has appointed seven reputable institutes to conduct structural audits: IIT Kanpur, Aligarh Muslim University, BITS Pilani, Delhi Technical University, Motilal Nehru National Institute of Technology in Allahabad, Malaviya National Institute of Technology in Jaipur, and Central Building Research Institute in Roorkee. Officials stated that the developer or AOA must select an auditor from among them, and that the audit fee would be mutually determined by the developer or AOA and the institute engaged.
"If 25% or more buyers complain about a defect, the committee would investigate the complaint," Nigam explained. If the committee determines that the complaint is about minor flaws, the Authority will send a notice to the developer or AOA, whoever is in charge, to resolve the complaint within three months. If the committee determines that the complaint involves major flaws, a structural audit is required, which should take place within a month. The developer or AOA will then address the complaint."
He also stated that if the developer fails to complete the audit within the time frame specified, the Authority will hire a consultant to complete the audit and add the cost to its liability. In the case of the AOA, the amount will be recovered from the management board via a recovery certificate.
"If the structural audit report reveals that a building needs several repairs and retrofitting, the developer or AOA will have to start work at the site in a month and complete the same in six months.”On a case-by-case basis, the committee may extend this period," Nigam explained. "If the AOA or developer does not begin work, the Authority will act in accordance with the provisions of the Industrial Area."
Manoj Gaur, president of CREDAI (NCR) and CMD of Gaurs Group, welcomed the appointment of reputable technical institutes to conduct building structural audits. "Institutions are already conducting structural audits on all CREDAI registered developers.”However, this move will increase buyer confidence by bringing clarity and transparency to the process," Gaur said.
March 16, 2023
Things to consider before using a personal loan for home loan down payment
Property purchases have become more affordable due to the widespread availability of ready-to-move-in homes and home loans. Banks will only lend up to 80% of the property's value as a home loan, with the buyer responsible for the remaining 10%, as well as any additional transaction costs. If you do not have enough money saved, you may need to look into other options for making this down payment.
At this point, a buyer may consider applying for a personal loan rather than waiting a few years to save money for the down payment, because they are either desperate for a home of their own (the Coronavirus-induced lockdown may prompt more people to consider buying a home of their own) or want to avoid paying for the down payment.
While personal loans provide instant liquidity, because banks are quick to disburse them, a borrower must be aware of the inner workings of this product and how its purchase will affect his future financial situation.
Interest rates on personal loans
Personal loans have much higher interest rates than home loans because they are unsecured loans (banks provide these loans based on your face value, with no collateral). Currently, a buyer in India can obtain housing loans with interest rates ranging from 9% to 11%. Personal loan interest rates, on the other hand, currently range between 11% and 24%. This would significantly raise the cost of purchasing your home.
"Personal loans are only recommended when the buyer has no other choice. With higher interest rates and shorter repayment terms, they can increase the financial burden on buyers. Lower interest rates on personal loans are only possible if you have a good credit score and a consistent income. So, keep a positive attitude.
The effect of a personal loan on one's credit score
If a person takes out a personal loan to pay for a down payment on a house, his creditworthiness suffers as well. Because you used a portion of your creditworthiness and repayment capability to obtain the personal loan, the amount of home loan that the bank is willing to issue will be reduced. Typically, EMI payments should not exceed 40% of your monthly take-home pay.
Personal loan plus mortgage EMI computation
Assume you've decided on a house worth Rs 50 lakh. Because of your good credit score and timely repayment of all previous credit card loans, the bank is willing to give you a housing loan of Rs 45 lakh (90% of the property value). Because you are an old customer, the bank is also willing to make an exception for you.
At an interest rate of 8%, the EMI for a 20-year term is Rs 41,822.
You now require Rs 8 lakh as a down payment, as well as stamp duty and registration fees. You obtain a personal loan for this purpose.
The EMI is Rs 17,394 for a five-year term at an interest rate of 11%.
This means that your monthly EMI would be Rs 59,216.
Your monthly income should be around Rs 1.48 lakh for a lender to approve these two loans with a combined EMI of Rs 59,216 (the sum of all your EMIs cannot exceed 40% of your net monthly income).
It is important to note at this point that the two loans would absolutely limit your borrowing.
Tax advantages for personal loans
Personal loans for certain purposes, such as home renovation or purchase, are tax deductible under the Income Tax (IT) Act. Buyers in India can deduct the interest paid on personal loans under Section 24 (b) of the Income Tax Act if the funds are used to make a down payment on a house. If the property is self-occupied, the rebate amount is limited to Rs 2 lakhs per year. This is true even if you are using the funds to renovate your home. However, if the property is rented, the entire interest amount may be deducted.
March 12, 2023
Housing Sales Volume grows 11% across 7 cities in Q3
According to rating agency ICRA, housing sales in volume terms increased 11% in the third quarter of this fiscal year across seven cities due to increased demand. "The reported sales in Q3 FY2023 in the top seven cities in India are the highest quarterly sales recorded in over ten years," ICRA said.
The residential real estate sector saw strong demand in Q3 of FY2023, with an 11% year-on-year (YoY) increase in area sold. The area sold in the first nine months of FY23 increased to 412 msf, up from 307 msf in the same period last year.
ICRA observed a gradual shift in the overall segment-wise composition following the pandemic, with a rise in the share of the luxury and mid segments to overall sales across the top seven cities — Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai Metropolitan Region (MMR), National Capital Region (NCR), and Pune.
The contribution of the luxury and mid segments to overall sales has increased from 14% and 36%, respectively, in FY20 to 16% and 42%, respectively, in April-December of FY23.
"The value of the area sold in the residential real estate sector is expected to grow by 8-12% in FY23 and a further 14-16% in FY24," said Anupama Reddy, Vice President and Co-Group Head - Corporate Ratings at ICRA.
Based on a sample of the top 12 listed real estate developers. The preference for larger spaces/upgrades and home ownership is expected to continue. Despite the RBI's rate hikes during the current fiscal year, home loan interest rates are still lower than the peak pre-Covid interest rates, and affordability remains healthy, according to the rating agency.
"While low inventory overhang and calibrated launches benefit developers, the impact of a slowing job market and higher interest rates on affordability pose risks," Reddy said.
Unsold inventory levels fell to 839 msf in December 2022, down from 923 msf in December 2021. As a result, the years-to-sell (YTS) for unsold inventory fell to a decade low of 1.5 years, according to ICRA. Furthermore, the rating agency stated that the average sale price increased by 10% year on year in Q3 of FY23, owing to the partial pass-through of increased input costs as well as a change in product mix with a higher share of luxury units.
February 27, 2023
Retail space demand will rise further, with rents increasing by 15% in six months, according to experts
With the worst effects of the Covid pandemic having passed, it is expected that revived consumer sentiment, consumption appetite, and omnichannel adoption by brands and retailers will sustain retail growth. Mall developers are also encouraged by the positive outlook.
The retail market in India is expected to reach $2 trillion by 2032, according to the Retailers Association of India (RAI). Retail sales surpassed pre-pandemic levels in 2022, increasing by around 19%.
Retail demand has increased.
Developers plan to add nearly 25 million square feet of new mall space across the top 7 cities over the next 4-5 years, buoyed by this growth; NCR and Hyderabad account for nearly 46% of total new upcoming supply, closely followed by Bengaluru at 19%, according to the report.
"Currently, the top cities have over 51 million square feet of mall stock across the country," said Kumar Rajagopalan, CEO of RAI, "with NCR, MMR (Mumbai Metropolitan Region), and Bengaluru accounting for 62% of total stock."
Also, spending by high-end brands in tier-II cities has increased over 50 per cent compared to the pre-pandemic period. According to the report, the availability of large land parcels and lower rental rates in comparison to larger cities has been instrumental in attracting many brands.
Buyers' changing behavior and interest in tier-II and tier-III centers for an "experience" that combines shopping with leisure and entertainment has pushed mall developers and brands to consolidate their presence in these underserved markets. "Tier-II and III cities gained prominence as employment centers opened in these cities," said Anuj Kejriwal, CEO & MD, ANAROCK Retail.
Rents are increasing.
Demand for retail leasing has increased as a result of increased consumer spending power. This has also resulted in an increase in average rental rates. "According to an industry analysis, rents at high-street locations in the country's top eight cities will increase by up to 50% in 2022, while shopping malls will see a 10% YoY average rent increase," said Aman Trehan, executive director of Trehan Iris.
According to the Anarock-RAI report, mall rents have increased by nearly 15%, which is higher than pre-pandemic levels. Bengaluru saw the greatest increase, at around 27%.
Though the percentage change is small because rentals fell significantly during the Covid period, they are still 20% higher than pre-COVID levels, according to Kunil.
Developers believe that average rental rates will rise another 15% in the next six months as more retail brands seek to establish a presence in prime locations.
Online vs. traditional retail
According to industry estimates, the online retail market in India accounts for approximately 25% of the total organised retail market and is expected to account for approximately 37% by 2030. Despite its increasing penetration, online retail accounts for a small portion of total business.
According to industry experts, despite the establishment of e-commerce channels following the pandemic, offline retail space did not face any major setbacks due to a high degree of integration of physical and digital.
Trehan stated that e-commerce has had no impact on offline retail because India is primarily an offline retail market, and retailers are adapting to changing market dynamics and transitioning to an omnichannel environment in which customers can shop through a variety of online and offline channels. "As a result, it's a win-win situation for us," he explained.
February 26, 2023
Property prices in 50 cities increase 7.1% year on year in Q3 FY23, according to NHB Residex
According to Residex, a housing price index (HPI) released by the National Housing Bank, residential property prices in 50 cities increased by 7.1% year on year during the quarter ended December 31, 2022, up from 4.5% the previous year (NHB).
NHB Residex publishes three housing price indices: 'HPI at assessment prices,' 'HPI at registered prices ‘and ‘HPI at market price’ for under-construction properties.
'HPI at assessment prices' tracks the movement of residential property prices in 50 cities on a quarterly basis, using FY 2017-18 as the base year, and is based on valuation prices collected from primary lending institutions.
On an annual basis, 44 of the 50 cities experienced an increase in the index, while six experienced a decrease. Gandhinagar's HPI increased by 21.4 percent, while Ludhiana's decreased by 11.6 percent.
Ahmedabad (14.4%), Bengaluru (8.0%), Chennai (8.7%), Delhi (1.8%), Hyderabad (10.2%), Kolkata (7.4%), Mumbai (4.4%), and Pune (7.2%) all saw an increase in the index on an annual basis.
On a quarterly basis, the 50-city index increased by 1.5% in October-December 2022, compared to 1.2% in the previous quarter. Since June 21, the index has shown an increasing trend on a quarterly basis.
The index increased in 40 of the top 50 cities during the quarter, with Kochi recording the highest sequential improvement of 6.4%, while Ludhiana, Delhi, Dehradun, Nagpur, Navi Mumbai, Raipur, Bhiwadi, Bidhan Nagar, Howrah, and New Town Kolkata recorded sequential declines in the 'HPI at assessment price'.
The 'HPI at market price for under-construction properties,' calculated using quoted prices for under-construction and ready-to-move unsold properties for 50 cities, increased by 10.8 percent year on year in the October-December 2022 quarter, compared to 2.9% the previous year. Lucknow saw the greatest increase (41.2%), while Rajkot saw a 3.4% decrease.
On a quarterly basis, the 50 city index increased by 3.1% during the quarter, compared to 3.7% in the previous quarter. The rising cost of construction is having an effect on property asking prices.
According to NHB Residex, the indices have been steadily rising since covid-19. The progress has been more noticeable in tier II and tier III cities.
February 18, 2023
Noida authority seeks consent from 17 institutes for building audits.
The Noida Authority has requested structural audits of buildings in the city from 17 technical institutions, including IITs and CBRI.
The Authority Board passed a structural audit policy for multi-story buildings in November of last year, making it mandatory for developers to submit a report after having the high-rises examined by an accredited institute. According to the policy, this report would be required in order to obtain full or partial occupancy certificates.
However, for existing buildings, the onus was placed on the developer or the AOA to arrange for a structural audit. If at least 25% of homebuyers in a particular society report defects within five years of receiving an occupancy certificate, the Authority will convene a committee to investigate the complaints and determine whether the defects are minor or major.
If the defects are severe, the builder will be required to conduct a structural audit and repair them. If defects are reported five years after receiving an OC, the AOA must intervene and order an audit.
Officials said that while the Authority had written to 17 institutions about becoming empanelled members of the audit team, only seven had responded so far. Among them are IIT-Kanpur, MNIT Prayagraj, BITS Pilani, NIT Jaipur, and CBRI-Roorkee. The policy will be implemented by the Authority after all institutions have signed on, officials said.
"We have sought consent from reputed institutions from across the country to join the panel for structural audit.” “The developer or the AOA, whoever is in charge of managing high-rise apartments, can approach any of these institutions and pay a fee to have a structural audit done," an official said.
He did, however, clarify that the fee would be decided between the developer or AOA and the institute, with no involvement from the Authority.
Following repeated complaints about poor construction standards, and in the aftermath of the Chintels Paradiso collapse, which killed two Gurgaon residents in February last year, the Authority began working on a policy to ensure periodic audits of buildings before and after handover.
Previously, the Authority would issue occupancy certificates for multi-story residential buildings after receiving a letter from the builder, which had been issued by a structural engineer or a technical agency.
There are currently 116 projects in the city. 47 of them are finished, while the rest are in various stages of construction.
February 08, 2023
Godrej Properties to add over 10 housing projects to development portfolio in FY23
These new additions will be made through its existing model of forming alliances and even direct land acquisitions supported by its robust balance sheet.
Godrej Properties, the real estate development arm of the Godrej Group, is likely to add at least 10 new residential projects across the country to its existing development portfolio by the end of March in the current financial year, a top company official said.
These new additions will be made through its existing model of alliance building and even through direct land acquisition which is backed by its strong balance sheet.
“The average size of a project to be added to the portfolio will probably be 1.5 to 2 million sq ft. But this can vary depending on the location and the occasion… We have a lot of new projects where we have more economic interest,” says Godrej Properties Executive Chairman of the company Pirojsha Godrej told ET.
The Godrej Group Company is trying to leverage its brand and financial position to take advantage of the opportunities for consolidation through the crisis arising in the real estate sector.
Industry experts believe that the ongoing market consolidation in favor of large and established developers will gain momentum due to their better execution efficiencies and access to liquidity in the current market environment as compared to smaller developers.
The company is also raising funds to drive consolidation and significantly strengthen its growth portfolio with the use of additional capital. Currently, it has a $1 billion war chest to support its development plans.
February 16, 2023
Avg monthly rents for 1,000 sq ft 2BHK flats rise up to 23 pc in top 7 cities from 2019.
According to Anarock, the average monthly rent for two-bedroom flats of 1,000 square feet has risen by up to 23% in seven major cities since 2019. The key residential rental hotspots saw up to a 23% increase in average monthly rentals between 2019 and 2022, according to a report by a property consultant.
The consultant calculated the average rent for a standard two-bedroom (two-bedroom) unit of 1,000 square feet.
Sector-150 in Noida saw the highest 23% increase in average rentals, to around Rs 19,000 per month, up from Rs 15,500 in 2019.
"Rental demand increased significantly in 2022," said Anarock Group Chairman Anuj Puri.
"With more companies calling their employees back to the office, including in hybrid mode, rental demand is rising across the seven top cities, after plummeting during the two worst Covid-19 waves," he added.
Puri predicted that rental demand would continue to rise in 2023.
"Employees returning from their hometowns or other parts of town tend to rent homes for at least the short term, often with the intention of purchasing later," he observed.
According to Anarock data, the average rent in Hyderabad's Hitech City increased by 7% to Rs 24,600 in 2022 from Rs 23,000 in 2019.
Gachibowli saw a 6% increase to Rs 23,400 from Rs 22,000 in the previous month.
In Delhi-NCR, the average rent in Sohna Road, Gurugram increased 14% to Rs 28,500 per month from Rs 25,000 per month.
Rent in Dwarka, the national capital, increased by 13% to Rs 22,000 from Rs 19,500.
In the Mumbai Metropolitan Region (MMR), the average rent in Chembur increased 13% to Rs 51,000 from Rs 45,000, while it increased 6% to Rs 41,000 from Rs 38,600 per month in Mulund.
Monthly rentals in Kolkata increased 16% to Rs 22,000 from Rs 19,000, while those in Rajarhat increased 11% to Rs 16,500 from Rs 14,800.
According to the data, the average rental value on Bengaluru's Sarjapur Road increased 14% to Rs 24,000 per month from Rs 21,000 per month.
Rentals in Whitefield, Bengaluru, increased by 18% to Rs 22,500 from Rs 19,000.
In Pune's residential market, Hinjewadi saw a 20% increase in average rent to Rs 21,000 from Rs 17,500, while Wagholi saw a 21% increase to Rs 17,000 from Rs 14,000.
The average rent in Chennai's Perambur increased by 13% to Rs 18,000 per month in 2022, up from Rs 16,000 per month in 2019.
The monthly rent in Pallavaram, Chennai, increased by 17% to Rs 17,000 from Rs 14,500 in 2019.
February 08, 2023
EMIs to go up, loans to get costlier as RBI hikes repo rate by 25 basis points to 6.5 per cent
As the Reserve Bank of India increased the repo rate by 25 basis points to 6.5 percent today, get ready to pay extra for your EMI. The repo increase will increase the cost of retail loans including home, auto, and personal loans among others, and borrowers must be prepared for increased monthly installment payments or tenure extensions, or both.
The decision of the monetary policy committee, which was approved by a vote of 4 out of 6 members, was announced by Governor Shaktikanta Das.
This year's first Monetary Policy Statement was released at this time.
After three consecutive 50 bps rate increases, the RBI increased its benchmark lending rate by 35 bps in December and declared that its fight against inflation was far from done.
The marginal standing facility rate and the bank rate will remain unchanged at 6.75% and 6.25%, respectively.
The MPC also made the decision to concentrate on removing accommodation in order to maintain target inflation going forward while promoting growth.
In order to ensure that inflation stays within the tolerance zone and gradually approaches the target, the MPC will continue to keep a close eye on the changing inflation outlook, RBI Governor and MPC Chair Shaktikanta Das said when announcing the policy choices.
The Reserve Bank has raised the short-term lending rate by 225 basis points since May of last year in an effort to keep inflation under control. As a result, between May 2022 and February 2023, the repo rate increased generally by 2.5%, from 4% to 6.5%.
The GDP growth forecast for FY23 has been increased by the RBI from 6.8% to 7%. The growth rate was estimated to be 6.4% for FY24.
The retail inflation rate decreased to 5.72% in December, remaining for a second month within the RBI's comfort zone of 2%-6%. In November it was 5.88%, and in October 2022 it was 6.77%.
Inflation has been declining, according to RBI Governor, and the "global economy does not appear so dismal currently." Retail inflation is anticipated to average 5.7% in Q4. However, core inflation is still "sticky." The inflation forecast for FY23 has remained at 6.5%. The inflation rate for FY24 has been set at 5.3%.
"The US Federal Reserve has slowed the rate of growth of its benchmark interest rate and the easing of retail inflation are both contributing factors to today's slower rate hike. After providing three consecutive rises of 50 bps, the apex bank increased the important benchmark interest rate (repo) by 35 basis points (bps) in December. Existing borrowers will be burdened by the latest increase, while new borrowers will be required to borrow money at higher interest rates. It would increase the cost of retail loans like home, auto, and personal loans among others, and consumers must be prepared for increased monthly installment payments or term extensions, or both "Adhil Shetty, the man behind BankBazaar.com, stated.
February 08, 2023
Builders in Noida plead with SC to recall order on the rate of interest
The Supreme Court was petitioned on Tuesday by the Confederation of Real Estate Developers of Noida and Greater Noida to review its decision from November 2017 that nullified the 2020 order capping the rate of interest on late payments by builders at 8% and allowed the authority to charge interest according to the agreement, which is in the range of 15%–23%.
For the past three years, the rate of interest debate has been interminably divisive. First, the Supreme Court capped the interest rate at 8% in June 2020, after reducing it from somewhere between 15% and 23%, depending on the terms of the contract. The court determined that the majority of the projects in Noida and Greater Noida were stalled because of the companies' financial difficulties and provided the builders with much-needed relief.
The authorities in Noida and Greater Noida then requested the recall of that ruling, claiming that the interest rate cap would cause them to lose Rs 7,500 crore. The Supreme Court accepted their request, recalled the ruling, and abolished the interest rate cap in November of last year, nearly two and a half years after it issued the order. The builders have since moved SC, asking for the restoration of the 2020 order and the recall of the recalled order.
Before a bench of justices, Ajay Rastogi and Bela Trivedi, and senior attorneys Abhishek Manu Singhvi, Ranjit Kumar, and Shekhar Naphade for the builders, argued that the 2020 order was a well-reasoned order that was given after careful thought and that there was no need to recall that order. Builders had a difficult time during the pandemic, according to Singhvi, who also informed the court that any benefits the company received from the reduced interest rate would be passed on to the customers and that the court could keep an eye on it.
In its 2020 order, the Supreme Court stated that the Amrapali Group of Companies-related bench had handled the case. The facts outlined also demonstrate how an unrelated issue ended up being handled by the bench that was primarily in charge of Amrapali Group of Companies' problems. When these orders were passed, no appropriate notice was given to the relevant authorities, and the court was also not informed of the precise effects of the rulings. We must conclude that this court erred in awarding relief to initiatives other than those of the Amrapali Group of Companies.
The court had capped lending rates in 2020, stating that the real estate industry needed to be "given momentum" and that relief should be given to builders since many of them were struggling to survive due to the slowing in the economy and the COVID-19 outbreak.
February 08, 2023
GST cut on cement may be put on fitment panel's table, says Finance Minister
Finance Minister Nirmala Sitharaman indicated Tuesday that the industry's demand for trimming the 28% goods and services tax levy on cement, a key input for the infrastructure sector, could be taken to the fitment panel under the GST Council.
The infrastructure sector proposed lowering the GST rate on cement because it would reduce project costs and promote growth. The minister responded, "I understand your point." Let's say we have the fitment committee look at it and, if required, take it before the council.
The minister was speaking at a post-budget gathering that was put on by the business group CII.
She urged India Inc. to collaborate with entrepreneurs and exploit their ideas for product development, as well as to look for "out of the box" suggestions for what can work as a catalyst to increase investment.
Sitharaman said to the businessmen in attendance, "I would think collaborating with startups for products... or for technical requirements is the need of the hour, and you should now unhesitatingly cooperate to achieve that benefit."
The minister urged businesses to promptly reevaluate their manufacturing procedures in light of some countries' erection of tariff walls on specific items as they went through the green transition.
The government's numerous production-linked incentive (PLI) programs may serve as a strong inducement to increase investment, according to the minister. She urged businesses to look beyond such plans and find more investment incentives.
According to her, following the COVID ruling, businesses began to consider India's prospects outside of their industries and adjusted their investment plans based on emerging technologies, sustainable development objectives, and sustainability imperatives.
Sitharaman, who increased the capital plan in the budget by 37.4% to 10 lakh crore, maintained confidence that the funding allotted for the current fiscal year will be used. The revised capital estimate for FY23 has been set by the government at 7.28 lakh crore.
Sanjiv Bajaj, president of the CII, praised the current budget for striking a balance between budgetary responsibility and economic expansion.
February 01, 2023
Real Estate Budget 2023: 10 major announcements by FM Nirmala Sitharaman
Nirmala Sitharaman, the Union Finance Minister, gave the Parliament a copy of the 2023–24 Budget. During her Budget address, the Finance Minister claimed that the government had developed a number of measures that would enhance the country's real estate and infrastructure. Regarding these sectors, FM has issued the following announcements:
1. The PM Awas Yojana budget was boosted by FM by 66%, putting it above Rs 79,000 crore.
2. The FM also suggested capping the section 54 and 54F deduction from capital gains on residential property investments at Rs. 10 crore. Lowering the amount of income tax exemption available for premiums from excessively expensive insurance policies.
3. FM also advised expanding the definition of capital gains" to include funds received in the form of a check or other form of payment for calculating capital gains in joint property development scenarios.
4. Union Finance Minister Nirmala Sitharama added that while interest paid on borrowed capital for purchasing or improving real estate may, under certain circumstances, be deducted from income, it may also be included in the cost of purchase or improvement at the time of transfer, lowering capital gains. It is suggested to provide that the amount of interest previously claimed as a deduction must not be included in the cost of acquisition or upgrade.
5. FM also suggested amending the rules to incorporate the money received by check or another form of payment as consideration when computing capital gains in circumstances of joint property development.
6. By implementing property tax governance changes and ring-fencing user fees on urban infrastructure, cities will be encouraged to improve their creditworthiness for municipal bonds.
7. Similar to the RIDF, an Urban Infrastructure Development Fund (UIDF) will be created using the shortfall in financing for priority sectors, according to FM. Public agencies will use this to build urban infrastructure in Tier 2 and Tier 3 cities, and the National Housing Bank will oversee it. States will be urged to use funding from the 15th Finance Commission's grants and other programs to implement reasonable user fees while accessing the UIDF. We anticipate providing 10,000 crores annually for this purpose.
8. According to FM, the newly constituted Infrastructure Finance Secretariat would support all stakeholders in securing more private investment in infrastructure, especially in areas heavily reliant on public resources like trains, roads, urban infrastructure, and power.
9. States and towns will be pushed to make urban planning changes and take other initiatives to make their cities "sustainable cities of tomorrow." According to FM, this entails the effective use of land resources, sufficient funding for urban infrastructure, transit-oriented development, increased access to and affordability of urban land, as well as possibilities for all.
10. Regardless of whether it engages in commercial activity, it is proposed to exempt any income earned by a body, authority, board, trust, or commission that was established or constituted by or under a central or state act with the goal of meeting the need for housing, planning, developing, or improving cities, towns, or villages, or regulating any activity or matter.
November 15, 2022
Why buying residential property is a safe bet for future real estate investments?
The definition of what a home is and what it means is constantly evolving over time, and the unchanging waters in which we find ourselves have only increased its importance. The tangible aspect of a home as a long-term investment tool has become stronger than ever with a huge return over this period. It is considered as one of the best and safest investment options in the current scenario.
Here are some reasons why this is the best time to invest in residential real estate.
Tangible asset and financial security
Owning a residential property is one of the most important and biggest financial investments one can make. Besides, future financial security, a house is also an immediate tangible asset, which also gives a sense of physical security to the investor.
Incremental value of a property increases with time
Globally, gold and property are the most well-known assets as their value always increases over time. In real estate, there are many factors that define the value of a property- land, location, timing, infrastructural development, interest rates, etc. A property which is at a prime or future location and includes advanced facilities would be a good option, as it promises higher returns to the person who has invested in the particular property, both as rent or outright sale.
A safer investment option
The current volatility of equity market, interest rate of mutual funds and traditional (financial) savings instruments have made real-estate home one of the better viable investment option (in the present scenario). Prices do not fluctuate overnight due to market volatility, and moreover, it offers relatively low risk and greater scope for diversification.
Real estate investing can effectively generate more revenue than it costs to finance it. The current unprecedented socio-economic environment has given rise to a sense of greater fiscal discipline, especially in the cash flow aspects of operating a business. Being a landlord and letting out your property will result in steady cash flow even in uncertain times.
Real estate investing can effectively generate more revenue than it costs to finance it. The current unprecedented socio-economic environment has given rise to a sense of greater fiscal discipline, especially in the cash flow aspects of operating a business. Being a landlord and letting out your property will result in steady cash flow even in uncertain times.
The inherent benefits, especially the intrinsic value of a home, add to its owner. This makes it one of the safest and most reliable investment options of all time.