A ray of hope for realtors

By: Karshni on 07:50

Realtors see a ray of hope in the assurances given by D K Mittal, Secretary of Department of Financial Services in the Ministry of Finance to Pradeep Jain, the chairman of CREDAI.

"We had a very cordial and fruitful discussion as we raised the various issues being faced by developers across the country in terms of high cost funding and escalating cost of material which adversely affect the cost of housing," Jain said in a statement.

 "Mittal promised that the government will look into the problems of the real estate developers and work towards reducing the cost of financing through the banks and financial institutions," he added.

Jain said discussions will be held in next couple of weeks to prepare a roadmap how the real estate industry can be benefitted to provide the affordable housing to common man. Emphasis is on making India ‘housing surplus’ by 2020. CREDAI strongly believes that revival of real estate industry will rejuvenate Indian economy as it contributes 11 per sent to the GDP.

CREDAI also wrote a letter to the Prime Minister giving a 10 Point agenda of action for taking the nation on an accelerated growth path by solving the housing problems and by bringing in reforms in areas like land, administration, banking and tax for the real estate industry.

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Developers to face more difficulties in Punjab

By: Karshni on 04:19

After Maharashtra, Punjab is set to stall real estate growth in the state by levying social infrastructure cess on property transactions. Punjab's real estate market is already going through a slowdown for last over 10 months.

"The imposition of (social infrastructure) cess is not a right move by the Punjab government as it will further aggravate realty's woes," Confederation of Estate Developers' Associations of India (CREDAI), Chairman (Punjab), Anil Chopra told PTI today.

Punjab cabinet yesterday decided to levy social infrastructure cess for health and education at a rate of 1 per cent on property transactions, besides raising the ceiling of registration fee from Rs 30,000 to Rs 2 lakh. The Punjab government would fetch additional revenue of Rs. 480 crore by the introduction of these proposals.

The move is being strongly opposed by developers in the state as the Punjab government had hiked the collector rates manifold in April this year also in a bid to raise its revenue. Not only has this Punjab levied stamp duty at a rate of 6 per cent in rural and 8 per cent in urban areas. Source: ET.

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Real estate prices are set to rise in Delhi

By: Karshni on 08:56

Chief Minister Sheila Dixit is all set to fulfill her promise to regularize 1,639 unauthorized colonies in the Capital as center decided to give green signal for regularization of 917 unauthorized colonies on Monday night.

Upbeat by the decision, she also requested the centre to consider regularization of colonies built on forest land.

She even gave the portfolio of urban development to Arvinder Singh Lovely in a major cabinet reshuffle as A.K walia was being too careful of the regularization process. There was huge clamor against slow process acquired by A.K walia as government wants the process to be expedited. Notably government has got only 15 months in hand before next elections to complete the regularization process.

With the issuance of notification by the centre, sale and purchase of properties in these colonies will now become legal, which is expected to boost the real estate market and prices are set to soar in the national capital region.

Affluent colonies like Mahendru enclave, Sainik Farms and Anant Ram Dairy, to be named a few in the list of unauthorized colonies.

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Consumers expectantly be burdened by extra 5% cost

By: Karshni on 10:01

Increasing difficulties of Indian realtors don’t seem to end. The Sales Tax Department of Maharashtra mandated builders and developers to pay retrospective VAT from June 06 to March 10 as Bombay high court turned down real estate developers’ appeal against the tax. 

The government's decision which is expected to hit realty industry hard will help government to collect Rs. 800 crore. However realtors have decided to pass on the burden on buyers where as department clearly stated that the onus to pay the tax liability is on the developer, not on the property buyer. The builders association in Maharashtra, CREDAI noted that each flat buyer in the state will have to pay up to 5% additional tax.

“The additional VAT will finally have to be borne by the customers.  I strongly advocate the government takes a second look at this ruling and take a decision which is equitable and fair to home buyers,” said Kishor Pate, CMD – Amit Enterprises Housing Ltd & Hon. Secretary, Credai in a statement today.

To retaliate against the injustice consumers created FORAM-Flat Owners’ Rights Protection Action Committee in Maharashtra. Source: Firstpost.

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NCRPB finally approved the Greater Noida master plan

By: Karshni on 06:37

Sunday brought good news for all realtors when The National Capital Region Planning Board (NCRPB) finally approved the Greater Noida master plan. The builders can resume the construction which was stalled for a year on farmers protest. The master plan was made mandatory by a court order in October 2011 for any construction activity in Noida Extension-- a newly proposed residential hub in the NCR. 

However consumers are expected to pay more as Real Estate developers expect house prices to increase by at least 25 % in Noida Extension.

"The housing demand in Noida Extension is going to be very high after NCRPB approval, while supply is very weak. Prices are bound to increase because of various factors such as hike in compensation to farmers and rising input cost," Amrapali Chairman and Managing Director Anil Sharma told PTI. 

Sharma said the prices would go up by about 25 per cent. "Prices were Rs 2,100-2,200 a sq ft in this region last year. Now we expect the same to go up to about Rs 2,600 per sq ft".  Source: ET.

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Karnataka government will convene a meeting of all real estate developers

By: Karshni on 08:30

Taking a cognizance of the concerns of Realtors in the state Karnataka government announced to convene a meeting of all real estate developers in 15 days for discussions. Karnataka Chief Minister Jagadish Shettar announced this at the state conference of CREDAI in Mangalore on Saturday.

Balakrishna Hegde, member of national executive committee of CREDAI expressed his concerns over heavy taxation. He noted that house buyers in the state are paying tax as high as 42%. He also said that real estate developers are burdened by multiple taxes such as VAT, stamp duty and service tax.

Mr. Shettar asked CREDAI to focus on affordable housing for people. He said meeting will be convened to discuss their problems related to taxes and approval process. Source: Business Line.

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Properties of The U.S in India will be on sale

By: Karshni on 06:22

The U.S Government is planning to sell its properties on prime locations of Delhi, Mumbai, Hyderabad, Chennai and Kolkata. The responsibility of this profit making venture has been put on the shoulders of Knight Frank, a property consultancy.

Knight Frank is supposed to evaluate and review all the properties of U.S government in India. All of these properties are at prime locations and were purchased at very low prices which have skyrocketed since then due to boom in Indian Real Estate Sector.

Reportedly two months ago The U.S government has sold Washington House, its residential building on Altamount Road in south Mumbai, to Lodha Group for Rs 375 crore.

The US government owns several properties like embassies, consulates, offices, residences, schools and libraries at prime locations in all metro cities of the country. Source: ET.

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it's CREDAI's turn to advise FM

By: Karshni on 09:08

CREDAI advised P.Chidambaram to bring down the cost of construction and facilitate Real Estate Sector in terms of access to bank resources and bank credits. The reactions came after FM’s address to chiefs of Government owned banks.

CREDAI national president Lalit Kumar Jain said "CREDAI appeals to Chidamabaram to look at ways to bring down the cost of construction while taking steps to encourage buyers to have houses of their own," He mockingly described FM’s statement as, “the government has finally realized that "real estate kick-starts economic development".

He lamented the hostile conditions in which Real Estate sector is striving hard. Banks and finance companies are still wary of financing the real estate sector as RBI always keeps it in the negative list. "It is ironic that while home loans area top priority, the home developers are not," Jain regretted.

"The general sentiments in the market and economy are preventing buyers to move and developers are unable to bring down the prices because of very high cost of construction. Hence the demand-supply mismatch continues with the housing shortage crossing the 26 million mark," he added. 

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Now P. Chidambaram asks banks to put pressure on realtors

By: Karshni on 10:00

In a meeting held on last Saturday with chiefs of government-owned banks, the finance minister P. Chidambaram asked them to put pressure on realtors to lower property prices to keep the economy going.

Finance minister emphasized on the role of realtors in the economy saying that only banks should not lower interest rates on home loans to keep the economy going, builders should also lower property rates. He pointed out builders have huge unsold inventories (close to 5 lakh flats are lying vacant) which they are not able to sell due to prevailing prices.

"A huge quantum of capital is locked. Why are banks not putting pressure on them (builders) to lower prices since you have funded both the builder and the retail home loan borrower," he told bankers. He even mentioned that borrowers should demand possession immediately as per schedule. 

However CREDAI counter attacked Finance Ministry by asking relevant relaxations to lower down the price.

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House prices increase despite economic low

By: Karshni on 09:44

Despite an economic slowdown, house prices recorded a rising trend in April-June Quarter. National Housing Bank recently published a survey indicating 17 out of 20 cities registered gain between 0.7% to 10.5% in house prices between January-March 2012 and April-June 2012.

In Mumbai the index rose 3.68 % whereas Delhi and NCR recorded the rise of 2.4% in the index followed by Chennai’s 1.6 %. Cities like Jaipur, Hyderabad and Indore reflected the decline in house prices.

The NHB Residex has been prepared for 20 cities and takes into account the price trends for residential properties in different locations and zones in each city, according to the classification devised for evaluation. It also helps consumers in decision making by informing them the emerging trends in the property market.

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CREDAI felicitated ASI with the ‘Best Maintained National Monument’ award

By: Karshni on 10:17

CREDAI felicitated Archaeological Survey of India with the ‘Best Maintained National Monument’ award for their maintenance of historic Fatehpur Sikri in a recently held award function in Mumbai. Shantilal Muttha, doyen of real estate and chairman and managing director of Muttha Group of Companies was also honoured for his contribution to the sector.

While appreciating Muttha CREDAI noted that his contribution to the industry is remarkable, he has built an empire in the world of real estate and social development in three notable decade long-service. Muttha is a great philanthropist who skillfully combined his business and social work schedules.

In appreciation for ASI CREDAI said ASI has made India Proud. 

The Confederation of Real Estate Developers’ Associations of India (CREDAI) is the apex body for private Real Estate developers in India. CREDAI represents over 8,800 developers through 20 member associations across the country.

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Unitech reduces debt by 325 crore

By: Karshni on 06:49

Unitech, the country's third largest real estate firm reported cut of Rs 325 crore in its consolidated net debt in financial year 2011-12 in spite of continuing losses.

The company’s debt reduced to 5,400 crore which was reported to be 5,399 crore on March 31, 2011 according to audited result of last fiscal.

Company official believes, "The reduction in debt of Rs 325 crore during FY'12 was through internal accruals," Unitech faced 53 % decline in its profit last week for the quarter ended in June. This year the consolidated net profit stood at Rs 45.88 crore against Rs 98.36 crore in June last year.

"The company's focus continues to be on ramping up the construction activity and is taking several measures to this end. A lot of emphasis is also being laid on improving various processes to drive efficiencies and reduce costs," Unitech Managing Director Ajay Chandra had said in a statement. 

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Industrialists considering Gujarat over Noida

By: Karshni on 09:42

Disappointed by the meager power supply in the state and lack of basic requirements for the industrial sector to flourish, The Noida Entrepreneurs' Association warned Uttar Pradesh’s government that they would pull out their businesses if conditions don’t improve.

They ascertained their dissent by writing to the Narendra Modi government to provide them plots in Mehsana District to begin industrial operations within two years. NEA President Vipin Malhan said “Industrialists in Noida have complained several times in the past about the "lackadaisical attitude" of successive UP governments in meeting basic requirements for the industrial sector to flourish. Primary among their demands have been supply of power round the clock to ensure optimum productivity. "Far from it, government is now mulling hiking power tariffs for industries," He also added, “"Even the big names... like Tata and Maruti have shifted base to Gujarat because the government has built an excellent environment in the state for industrial development,"

On the other hand Gujarat has attracted them with conducive environment to invest. NEA has requested Gujarat government to provide them with industrial plots ranging between 1,000 and 5,000 sqm in the Mehsana district at government-approved rates. "If land is provided to us, we will work towards completing all formalities within the next two years to make industries operational immediately thereafter," he confirmed.

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Buyers to get edge in new real estate bill

By: Karshni on 04:40

The Real Estate bill which is expected to be taken up in Monsoon session of the parliament, promises more rights for buyers. Cabinet will put the bill across very soon as inter-ministerial consultations are over. The Union minister of housing and poverty alleviation Kumari Selja revealed this on the sidelines of a conference in Delhi.

The bill is supposed to empower the appellate by endowing powers of a civil court to regulatory authority and the appellate tribunal. The bill also proposes to create the housing appellate tribunal bestowed with adjudicatory powers. To make the transactions more transparent bill requires developers to make disclosures regarding title over the land, carpet area, layout plan, consumption of floor space index, additional floor space index and details of the promoter enterprise. It also requires the disclosure of the schedule for procurement of municipal services such as sewerage, water supply, electricity, drainage and also fittings by the developers.

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Get an scholarship to pursue your dreams in Real Estate

By: Karshni on 23:47

Confederation of Real Estate Developers' Associations of India (CREDAI) has announced two major projects- The CREDAI Institute of Real Estate Research and Professional Studies and Educational Scholarship Scheme (ESS) to promote excellence and professionalism. Institute is expected to set up at Ahmedabad, Gujarat.

"The CREDAI institute, aiming at imparting world class education and research in real estate related subjects, will be functional from June 2014. It will have tie-ups and affiliations with top international institutes having expertise in real estate," said CREDAI National President Lalit Kumar Jain.

Educational Scholarship Scheme (ESS) will be offered to students who want to pursue full-time degree/post-graduate degree courses in civil engineering or management degrees related to the real estate sector at any of the colleges or institutes recognized by the All India Council of Technical Education (AICTE).

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