REAL ESTATE “MODI-FIED”: BEST TIME TO BUY PROPERTY IS NOW

India’s fight against black money, corruption and terrorism just got very real. In what many consider to be a rather bold move, Prime Minister Narendra Modi on November 8th announced that the Rs 500 and Rs 1000 notes will no longer be legal tenders. Modi has said that these notes will be replaced with newly minted Rs 500 and Rs 2000 notes. This move has far reaching implications for many sectors including real estate which has been going through a somewhat uninspiring phase in the recent times.Narendra Modi

It is expected that the segments of the property market which have a high proportion of cash transactions will be hit hard- viz the secondary property market, luxury home sales and land transactions. The range of cash component used in these segments is anywhere between 15-40%. One can expect to see a price correction triggered by stagnation of sales as the stock of unaccounted money which lubricates these markets has been sucked out.

Even though many are predicting negative market sentiments for the realty sector there is a silver lining for buyers who are financing their property purchase via means of accounted money and home loans. Here are top 5 reasons why a salaried property seekers should invest in a property today:

1) It is a buyers’ market for the next three to four months: Till the market stabilises many builders would be in need of cash flow and buyers would definitely have an upper hand in negotiating the best deals in the primary property market.

2) Higher costs due to RERA: With implementation of RERA (Real Estate Regulatory Act) the property prices are likely to see an upward trend. The RERA requires developers to be transparent about source and use of funds for a project, and the higher cost of complying with the regulation is unlikely to be absorbed by the builder. So the next few months buying window for buyers in ideal.

3) Impact of GST: Post implementation of the Goods and Services Tax (GST) most of the input items into real estate like cement would fall in the 18% bracket, which is much lower than the current 30-40% tax. So the overall construction cost for a developer is likely to fall. But, looking at the current scenario with decrease in profit margins for developers due to RERA and expected construction delays due to demonetisation many developers might not pass on this benefit to buyers.

4) Buyers would be spoilt for choice in the secondary market: Until last week, most sellers of resale properties had an incentive to seek out buyers who were willing to transact in unaccounted money. So much so that there was a preference for such buyers, effectively eliminating most resale properties from the reach of salaried buyers who finance their purchase via their savings and home loans. Given the demonetisation, the incentive to go sell through cash dominant transactions is less which opens up a whole new supply of bargain deals in the resale market. In addition to the wider choice, it gives an upper hand to property buyers to crack the best deal.

5) Interest rates are set to go down further: Demonetisation brings with it a deflationary effect on the economy, and you can expect interest rates to go down further in the short run. The banks will have more liquidity at their disposal due to higher deposits into the banking channel. Both are likely to trigger a push into home loan lending via cheaper loans and better credit terms.

If you are looking to buy a home, and are looking to finance your purchase through a loan, there can’t be a better time than now!

Source: http://www.indiainfoline.com/article/article-latest/real-estate-116111500396_1.html

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MORE PROTECTION FOR HOMEBUYERS

Union urban development ministry finalises new realty rules under the latest law passed by the Parliament

There is good news for homebuyers in Delhi.

The Union urban development (UD) ministry on Wednesday finalised the rules to make the landmark Real Estate (Regulation and Development) Act operational in the national capital.

The law will not only protect new homebuyers from unscrupulous developers but safeguard the interest of allottees of the ongoing projects.

The Parliament had cleared the realty law in March and states and union territories were given six months to notify the rules.

While for Delhi, the UD ministry will notify the rules, the housing and urban poverty alleviation ministry (HUPA) had on October 31 completed the process for five Union Territories that it administers. States have to frame their own rules based on the Central law. So far, only Uttar Pradesh and Gujarat have notified the rules.

“We will notify the rules for Delhi before November 27, the deadline set by the Centre,” said a senior UD ministry official.

However, as of now only some of the provisions of the realty law will become operational. The full Act will come into force from May 1, 2017 when the regulatory authority is set up in each state and Union Territory.

For the interim period, vicechairman of the Delhi Development Authority has been designated as the real estate regulator.

The realty act empowers the appropriate government to designate any officer as regulatory authority till a full fledged one is established.

Some of the important provisions in the Delhi rules that has been finalised are:

ONGOING PROJECTS

The rules have cleared the opacity around ongoing projects that have not received completion certificate till now.

While registering with the regulator, developers of all such project will not only have to make public the original sanctioned plans with specifications and changes made later but also the total amount collected from allottees and the money that has been used already.

Besides, within three months of applying for registration of a project the developer will also have to deposit 70% of the amount collected that has not been used in a separate bank account for ensuring completion of such ongoing projects.

REGISTRATION OF PROJECTS

To incentivise developers to get their project registered with the realty regulator, the Centre has reduced the fee by half.

The fee has been reduced to Rs.5 per sqm for up to 1,000 sqm area and Rs.10 per sqm beyond this limit subject to a maximum of Rs.50 lakh per project.

INTEREST TO BE PAID IN CASE OF DEFAULT

In case of default, promoter and allottee will have to repay with same rate of interest, which will be higher by two per cent of the SBI’s benchmark interest rate

LAW’S PROVISIONS

The realty law makes it mandatory for all such builders — developing a project where the land exceeds 500 square metre — to register themselves with the regulatory authority before launching or even advertising their project

Failure to do so will invite a penalty of up to 10% of the project cost. For subsequent violation, developers will land up in jail for three years.

The rules also provide for the regulatory authorities to undertake third party quality audit of real estate projects registered with them, to ensure quality of construction, services etc., of the project in the interest of buyers.

Source From: hindustantimes.com

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60 KM THIRD RING ROAD BY 2020 TO EASE DELHI’S TRAFFIC

The government’s traffic and transport body approved Delhi Development Authority’s (DDA) proposal for a third ring road.spanning 60 kilo -metres, to decongest the national capital, On Wednesday -Urban Extension Road-II Is expected to reduce traffic on Ring Road and Outer Ring Road. which see heavy Jams during most part or the day. lasest Imated to be completed by 99020.

The semi-circular road win start from National Highway (NH)l near Narela, pass through NH 10 near ROMIll and Dwatica and end at NH S. said a senior DDA Official.

DDA has constructed 90% of the road. The portion between Kanptawala and NEMO remains, the Official sald.

At present, If a person In Narela has to gothodirport,h0Or she will have to cross Dhaula Kuan. Once the road Is constructed, people can straighta­way cross the All Ptir and enter the alrport, 110 Sald. People coming from Rohini can also directly enter the air­port, rather than coming to Dhaula Kuan, he added.

Slmilarly,people in north and northwest Delhi have to go to Punlabl Bagh and Dhaula Kuan to get to therdrport. They can use the new road once It is con­structed.

The road has provisions of Mass Ftap Id Transit System and Bus Rapid Transit system. It was also decided In the meeting that the existing Build Rotulfdong the canal connecting Bljwasan-Najafgarh to the Northern Peripheral Road will bewidenedtofacn It ate local traff­ic movement between Delhi and Gurgaon.

The road from Mangal Pandey Marg In east Delhi from the foot of Signet ore Bridge to Detal-UP Border (Bhopura) was also approved. This will fachitate smooth traffic on east Delhi road.

A total of 20 Metro stations and its Surrounding area under the Multi Modal Integration (MMI) project were also approved to facilitate last mile connectivity for Metro users.

The MMI projects consist of Integrated scheme for pedes­trian fact litles such as fOOt Over-bridge. wider passes and space for parking of auto rickshaws and e-rickshaws.

An estimate of the traffic that the stretch experiences needs to be considered before we can surely say whether It will ease the traffic woes.” said head of department(transport an plan­ning) at School of Planning and Architecture at, PK Sarkar.

Source From: Hindustan Times

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Govt Rider to Land-Pooling Policy

dda-smart-cities-land-pooling-policy

The Delhi government has agreed in-principle to put its stamp of approval on DDA’s land-pooling policy provided the agency makes a few amendments to it.The AAP government wants DDA to hand over 12-15% of the pooled land (from DDA’s share) to it for free for development projects.

The decision was communicated to the land-owning agency on Thursday. The policy was notified by the Union urban development ministry in 2013. “It is suggested that a provision may be made in the land-pooling policy to hand over the component pertaining to industrial (4-5%), public and semi-public facilities (8-10%)–12-15% in total of the pooled land–to the Delhi government free of cost,“ said an official.

Sources said the government was facing a lot of difficulty in getting land from DDA. “The government requires land for facilities such as electrical sub-stations, stadium, industrial areas, old-age homes, hostels, schools, etc. It has to buy land from DDA,“ the official added.

According to Delhi government officials, if the policy is amended, it will help the government build infrastructure on time. DDA officials said that the government’s view would be studied and placed before the competent authority for a final decision.

The land-pooling policy is stuck for the past one year as the Delhi government is yet to declare 95 villages where the policy will be implemented as development areas.The government had already transferred gram sabha land in these 95 villages to its revenue department. This will help the government keep those plots for infrastructure projects even after the villages have been handed over to DDA.

Sources said DDA might not agree to hand over its land to the government free of cost. “We have to see the issue in totality. DDA will be spending money on providing basic infrastructure in these areas. The industrial areas can’t be given free of cost. But the matter has to be studied as an implementation of the land pooling policy is crucial for Delhi’s development,“ said a senior official……..

Full details:  http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Govt-rider-to-land-pooling-policy-02072016004039

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All about the most preferred choice for home seekers in Delhi

preferred-choice-dda-smart-cities

India has been the latest market for real estate boom and the main reason behind this is the people coming from all around the globe to settle in Delhi. There are so many new companies and MNC’s that are getting established in the NCR region and along with these companies the techies, employees and many other members are coming to Delhi. As the demand is increasing every day, people are looking for more and more luxurious and comfortable stay. One of the popular places in Delhi that have been a buzz since its inception is the L Zone where builders like Kamp developers Dwarka are coming up with a series of world-class houses.

The L zone Dwarka:

As the demand for housing in Delhi is increasing the Delhi Development Authority has been working on a master plan in which a particular zone has been focused. This zone has been named as L zone Dwarka. The L zone Dwarka is located in the South-West Delhi and the total area is about 22,840 hectare. There are many things that make this L zone Dwarka in Delhi is the most preferred choice for home seekers.

Some of the facts and pointers of Kamp Sir syed Residency Dwarka L Zone include the L zone Dwarka in Delhi is close to the Indira Gandhi Internation Airport. The location is also in the perfect spot as it has been strategically placed between the two popular regions Dwarka and Gurgaon. Under the master development plan, the Delhi Development Authority has divided Delhi into many zones. The L zone Dwarka is the largest of all the zones.

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