Gurgaon Estate Developers

02/07/2016

10/04/2015

Buildings within 15km of airports to take off easily
The government has eased the process for getting permission for construction within the 15km radius of airports. As per the new norms, projects don't need to get nod from the civil aviation ministry, if the proposed height is within the stipulated limits.
"We issued the guidelines few weeks back. If the plans and projects comply with the height restriction norms, the local bodies can give permission and these cases need not come to our ministry," civil aviation secretary V Somasundran told TOI.
Sources said this had been communicated to urban development minister M Venkaiah Naidu. It will expedite the clearance for construction projects. They said earlier all applications needed to get approval from the civil aviation ministry, even if they complied with the height norms.
Officials said originally Airports Authority of India (AAI) used to clear all such projects, but during UPA-II, the power was vested with the aviation ministry. "Cutting down one stage for procedural clearance will expedite projects," a UD ministry official said.
In yet another move, the aviation ministry has come out with colour-coding zones in Mumbai to make the process of clearances easier for real estate projects. "We target to complete this process for Delhi by April 15 and for the other cities, it's two months," Somasundaran said.
The code zoning at various levels can be used as immediate reference and municipal authorities can clear project below the specified height, UD ministry sources said. The Times of India

08/04/2015

Amendments to “The Real Estate (Regulation and Development) Bill, 2013
Press Information Bureau
Government of India
Cabinet, 07-April-2015 20:05 IST

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, today gave its approval to amendments to the Real Estate (Regulation and Development) Bill, 2013 pending in the Rajya Sabha, and approved amendments proposed in the Bill. The recommendations of the Standing Committee of Parliament on Urban Development and suggestions of various stakeholders (consumer organizations, industry associations, academia, experts etc.) have also been included after extensive consultations.
The Real Estate (Regulation and Development) Bill is a pioneering initiative to protect the interest of consumers, to promote fair play in real estate transactions and to ensure timely ex*****on of projects.
The Bill provides for a uniform regulatory environment, to protect consumer interests, help speedy adjudication of disputes and ensure orderly growth of the real estate sector. The Bill contains provisions of registration of real estate projects and registration of real estate agents with the Real Estate Regulatory Authority; functions and duties of promoters and allottees; establishment of Real Estate Regulatory Authority; establishment of fast track dispute resolution mechanism through adjudication; establishment of a Real Estate Appellate Tribunal; offences and penalties etc.
These measures are expected to boost domestic and foreign investment in the sector and help achieve the objective of the Government of India to provide ‘Housing for All by 2022’, through enhanced private participation.
The Bill ensures mandatory disclosure by promoters to customers through registration of real estate projects as well as real estate agents with the Real Estate Regulatory Authority. The Bill aims at restoring confidence of the general public in the real estate sector; by instituting transparency and accountability in real estate and housing transactions. This in turn will enable the sector to access capital and financial markets essential for its long term growth. The Bill will promote orderly growth through consequent efficient project ex*****on, professionalism and standardization.
The Bill is expected to ensure greater accountability towards consumers, and to significantly reduce frauds and delays. The Bill is also expected to promote regulated and orderly growth through efficiency, professionalism and standardization. It seeks to ensure consumer protection, without adding another stage in the procedure for sanctions.
The salient features of the Bill are as under:
a. Applicability of the Bill:
The proposed initial Bill was applicable for residential real estate. It is now proposed to cover both residential and commercial real estate;
b. Establishment of Real Estate Regulatory Authority:
· Establishment of one or more ‘Real Estate Regulatory Authority’ in each State/ Union Territory (UT), or one Authority for two or more States/UT, by the Appropriate Government for oversight of real estate transactions,
· To appoint one or more adjudicating officers to settle disputes and impose compensation and interest;
c. Registration of Real Estate Projects and Registration of Real Estate Agents:
Mandatory registration of real estate projects and real estate agents who intend to sell any plot, apartment or building, with the Real Estate Regulatory Authority;
d. Mandatory Public Disclosure of all project details:
Mandatory public disclosure norms for all registered projects such as details of promoters, project, layout plan, plan of development works, land status, status of statutory approvals and disclosure of proforma agreements, names and addresses of real estate agents, contractors, architect, structural engineer etc.;
e. Functions and Duties of Promoter:
· Disclosure of all relevant information of project;
· Adherence to approved plans and project specifications;
· Obligations regarding veracity of the advertisement for sale or prospectus;
· Rectify structural defects;
· Refund money in cases of default;
f. Compulsory deposit of 50 percent:
To compulsorily deposit 50 percent (or such lesser percent as notified by the Appropriate Government) of the amounts realized for the real estate project from the allottees in a separate account in a scheduled bank within a period of fifteen days to cover the cost of construction to be used for that purpose;
g. Adherence to declared plans:
· To bar the promoter from altering plans, structural designs and specifications of the plot, apartment or building without the consent of two-third allottees after disclosure;
· However, minor additions or alterations permissible due to architectural and structural reasons;
h. Functions of Real Estate Agents:
· Real estate agents to sell properties registered with the Authority;
· Maintain books of accounts, records and documents;
· Not to involve in any unfair trade practices;
i. Rights and Duties of Allottees:
· Right to obtain stage-wise time schedule of project;
· Claim possession as per promoter declaration;
· Refund with interest and compensation for default by the promoter;
· Allottees to make payments and fulfill responsibilities as per agreement;
j. Functions of Real Estate Regulatory Authority:
The Authority to act as the nodal agency to co-ordinate efforts regarding development of the real estate sector and render necessary advice to the appropriate Government to ensure the growth and promotion of a transparent, efficient and competitive real estate sector;
k. Fast Track Dispute Settlement Mechanism:
· Fast track dispute resolution through adjudicating officers (District Judge);
· Appellate Tribunal to hear appeals;
l. Establishment of Central Advisory Council:
To advise the Central Government on implementation of the Act, recommend policy, protection of consumer interest and to foster growth and development of the real estate sector;
m. Establishment of Real Estate Appellate Tribunal:
Real Estate Appellate Tribunal to hear appeals from orders of the Authority and the adjudicating officer. The Appellate Tribunal is to be headed by a sitting or retired Judge of the High Court, with one judicial and one administrative/technical member;
n. Punitive Provisions:
Punitive provisions including de-registration of the project and penalties in case of contravention of provisions of the Bill or the orders of the Authority or Tribunal;
o. Bar of Jurisdiction Courts:
Provision for barring jurisdiction of court and any authority from entertaining complaints in respect of matters covered under the Bill;
p. Power to make Rules and Regulations:
· Appropriate Government to have powers to make rules over subjects specified in the Bill;
· Regulatory Authority to have powers to make regulations;
Background:
Real estate development and housing construction was largely the concern of State institutions till the 1980s with very few private promoters and a nascent industry. With the liberalization of the economy, conscious encouragement was given to the growth of the private sector in construction, with a great deal of success, and the sector today is estimated to contribute substantially to the country’s GDP.
Currently, the real estate and housing sector is largely unregulated and opaque, with consumers often being unable to procure complete information, or to enforce accountability against builders and developers in the absence of effective regulation.

16/03/2015

$5mn FDI in construction must come in 6 months of nod: Govt
Government today said foreign companies investing in the construction sector will have to bring in a minimum of US$ 5 million within six months of the date of approval of the building plan.
Clarifying on the issues raised by investors on 2014 Press Note on Construction sector, the government said that exit from the incomplete project will be permitted after approval of the Foreign Investment Promotion Board (FIPB).
Automatic exit, it said, would be allowed after the completion of the project.
“FDI policy mandates exit on the completion of the project or completion of trunk infrastructure. If the unused land is part of the project and trunk infrastructure has not been developed, then exit can take place with prior approval of FIPB,” the clarification said.
The government in 2014 relaxed the guidelines for Foreign Direct Investment (FDI) in Construction development sector and reduced the minimum capitalisation requirement from US$ 10 million to 5 million.
It has been clarified that minimum capitalisation condition is project specific, not company specific.
The government further said that no new FDI will be allowed in the project if the minimum capitalisation of US$ 5 million has not been achieved within six months of commencement of the project.
“If such minimum capitalisation was achieved, FDI can be brought in till the period of 10 years or the completion of the project, whichever is earlier,” it said.
The six month time period for the purpose of FDI would commence from the date of approval of the “building plan/lay out plan by the relevant statutory authority.” Further approvals would be just addendum or modification to the first approval, it clarified.
The transfer of stake from one non-resident to another non-resident before completion of the project or before completion of trunk infrastructure would require FIPB nod, it added.
Trunk infrastructure includes road, water supply, street lighting, drainage and sewerage. The Business Line

20/02/2015

09/02/2015

57,000 flats unsold in Oct-Dec 2014
Yet another research report released on Janauary 4 paints a gloomy picture of the city's real estate market.
Realty research firm Liases Foras has pegged the unsold flats in Greater Mumbai at 57,000 in October-December 2014. There was a fresh supply of 3,523 flats in the same period.
"Inventories are piling up. It will take over five years to sell the existing stock at the current pace of sale in Mumbai,'' said Pankaj Kapoor of Liases Foras.
The average weighted cost of an apartment in Mumbai is Rs 3.03 crore or Rs 20,449 per square foot. "Who can afford it? With the recent increase in ready-reckoner rates, there is very little scope for correction,'' said Kapoor.
In the larger Mumbai Metropolitan Region (MMR), the unsold stock stands at 1.62 lakh flats. In the July-September quarter, this figure was at 1.48 lakh units. That quarter recorded sales of 10,066 flats in MMR.
It slightly increased to 10,211 units in the last quarter of 2014. The weighted average cost of a flat in MMR is pegged at Rs 13,121 a sq ft, while the average cost of unsold stock is Rs 1.33 crore in the region.
The Liases Foras report said it will take more than four years to sell the existing stock at the current pace of sale in MMR. "The market is attaining its own peak of inefficiency every quarter,'' said Kapoor. The Times of India

16/01/2015

RBI rate cut will boost housing demand: Realty developers
The real estate industry today hailed the RBI's decision to cut key interest rate, saying the move will boost housing demand and also improve sentiments in the sluggish property market.
However, real estate developers and property consultants demanded that interest rates be further reduced.
Encouraged by softening inflation, the RBI today decided to cut the benchmark interest rate by 0.25 per cent to 7.75 per cent with a view to boost growth.
"It's a great new year gift. It seems that the Finance Minister's effort has borne fruit to convince RBI governor. Given the background of RBI governor, even the small beginning will be marked as big signs of hopes for the Indian economy," DLF group executive director Rajeev Talwar told PTI.
The move would definitely encourage buyers now to invest in new homes, he added.
Commenting on the development, property consultant CBRE South Asia Chairman & MD Anshuman Magazine said, "This decision, early in the year, is a welcome one. Given the current market situation, this reduction in the base rate is an important step in improving home buying sentiments".
Magazine said that this move, hopefully with expected reduction in mortgage rates, would improve residential sales across the country, which have been suffering from general slackness in recent times.
Housing sales fell to 1.75 lakh units in the primary markets of seven major cities in 2014 against nearly 2 lakh units in the previous year due to demand slowdown, according to recent JLL India report.
CREDAI, the apex realtors' body, Chairman Lalit Kumar Jain termed RBI's decision as a "good beginning" but said "this is not enough."
"A reduction of 200 basis point (reduction of interest rate by 2%) within short span is needed," Jain said.
Echoing similar views, Credai President (Elect) Getamber Anand said: "Good small step, but industry is awaiting a more aggressive cut this quarter".
Global property consultant JLL India Chairman & Country Head Anuj Puri said: "I expect this cut in interest rate to be the first of several to come, and these will cumulatively make a big difference to home loan borrowers. As of now, the current rate cut will help revive market sentiment, which is very timely".
Cushman & Wakefield Executive Managing Director, South Asia, Sanjay Dutt said this move would instill hope and confidence in the real estate industry that a recovery in housing sales is around the corner.
SARE Homes MD David walker said the measure will cheer up the markets and hoped that financial institutions would pass on this reduction to customers, which in turn would boost housing demand.
Welcoming the RBI decision, Parsvnath Developers Chairman Pradeep Jain said: "Realty sector has been struggling for the last 3 quarters with lower demand and increasing inventories. Today's decision would help reduction in EMIs, thereby encouraging fence sitters to conclude deals. Developers would also get funds at comparatively lower rates."
Consultant Knight Frank India CMD Shishir Baijal termed the RBI's decision as a positive move, which would benefit the debt burdened developers and stretched households alike.
Ansal API Vice Chairman Pranav Ansal said this is a positive step from the RBI and will boost housing sales and improve overall sentiments in the realty market.
Omaxe CEO Mohit Goel said: "The move clearly shows RBI's shift in stance in favour of growth. This is also the correct time to usher in a slew of out-of-policy measures like allowing banks to lend more to real estate, easy funding norms etc so that the real estate sector plays role of a catalyst in driving the overall economy."
CREDAI (NCR) President Rohit Raj Modi said the rate cut will help developers to expedite projects which were otherwise facing fund crunch.
"Home buyers dreaming of owning a home would also get a boost as we expect an accelerated purchase cycle," he added.
P Sahel, Vice Chairman, Lotus Greens Developers, welcomed the decision saying the move would lead to reduction in the home loans rates which might further bring prospective home buyers back to market.
"It is a very welcome step and much awaited relief given by the central bank. Real estate industry is hoping this rate cut will pass on to consumers by financial institutions as soon as possible to provide positive trend in the coming months," TDI Infracorp COO Nitesh Kumar said.
ACE group CMD Ajay Kumar expected that banks would cut down interest on home loans after this move.
"This is a good sign and the real estate sector still look forward to RBI take the drastic steps in its forth coming monetary policy".
Burman GSC CEO Gaurav Pandey said, "This repo rate cut is a subtle move yet could be a defining moment in the 'growth comeback story' for India in post 2015 era."
Ramprastha Group CEO Nikhil Jain said the industry was waiting for this move which came as a surprise from the RBI.
Neeraj Gulati, MD of Assotech Realty, described the decision as a "sigh of relief" for the industry. "For the customers, it creates an opportune time to invest for their dream home as real estate prices are at its all time low."
Silverglades Director Anubhav Jain said: "Even though the RBI rate cut is not very substantial. It will boost the sentiments of the real estate sector to some extent."
Realty portal PropTiger.com Co-founder Prashan Agarwal said: "The home loan rates will ease soon...and will bring more fence-sitters to become buyers."
ABA Corp Director Amit Modi said: "This is a good and much awaited development, since easing interest rate will help revive health of businesses like Real-Estate which are highly sensitive to interest rate movements." The Economic Times

03/01/2015

Number of housing loan accounts dips 2.7%
The housing market in 2013, the last year for which data is available, seems to have catered to high-end users more than the middle class. As a result, while the number of housing loan accounts with commercial banks dropped by 2.7% between 2012 and 2013, the total amount disbursed through such loans increased by 7.3%, according to data just released by the Reserve Bank of India.
Realtors and bankers TOI spoke to felt the number of accounts had fallen due to the high price of real estate in cities, which was dissuading the lower income groups. On the other hand, the number of people going in for housing loan amounts ranging from Rs 2 crore to Rs 8 crore increased.
In 2012, the total number of housing loan accounts with all scheduled commercial banks was 47.78 lakh. In 2013, it came down to 46.43 lakh. During the same period, the total loan amount disbursed under this category increased from Rs 2.6 lakh crore to Rs 2.8 lakh crore.
The reduction in the number of accounts year-on-year is unusual. In 2011, the number of accounts was 47.32 lakh, which went up to 47.78 lakh in 2012, with the disbursed amount also increasing from Rs 2.5 lakh crore to Rs 2.6 lakh crore.
"There is a general perception that housing projects will be delayed and this has dissuaded many from investing in multi-storey apartments. The other reason could be the price of apartments in urban areas. The price of apartments within cities has not come down and only people who can afford in crores opt to invest in purchase of apartments," said Confederation of Real Estate Developers' Associations of India (Credai) Tamil Nadu chapter president N Nandakumar.
Input costs have also increased by 8% to 25% in the last few years. This has increased construction costs and coupled with rising land prices, the cost of an apartment has also gone up significantly in urban areas, said Nandakumar.
Almost all states and Union territories have seen a drop in the number of accounts. For example, Delhi had 1.41 lakh housing loan accounts in 2012 but in 2013, the number dropped to 1.06 lakh accounts. In Maharashtra, the number of accounts in 2012 was 83.67 lakh and it dropped to 83.60 lakh though the amount disbursed went up from Rs 83,674 crore to Rs 87,046 crore.
"The main reason for drop in housing loan accounts is the high price of property. Not many in the middle income group are able to afford houses in the city and there are many apartments with big builders awaiting customers," said Nallaperumal Pillai, chief manager of SBI personal banking division. Previously many would seek loan amounts ranging from Rs 15 to Rs 20 lakh but in the last few years, the amount has gone up to Rs 1 crore or more, said Pillai. The Times of India