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  • AFFORDABLE HOUSES: Growth Drivers of Indian Real Estate Industry

    AFFORDABLE HOUSES

    If we talk about affordable houses, it typically denotes the housing needs of the lower or middle income population. The Government of India has taken number of steps to make affordable house available to everyone.

    Budget 2017 has proposed infrastructure status for affordable housing, a long-standing demand of developers, and also increased the allocation for the Prime Minister Awas Yojana from Rs 15,000 crore to Rs 23,000 crore, bringing the country closer to realising the Housing for All mission by 2022. Under this one crore houses are to be built by 2019 in rural India for the homeless and those living in ‘kaccha’ houses.

  • FESTIVE SEASON: Developers offering offers to woo buyers

    Festive Season For Home Buyers

    Festival season begins from Navratras and lasts till Diwali in India. It brings happiness and optimism with it. It is the time when developers offer many offerings and freebies to attract buyers and push their selling. On the other hand buyers consider festival season as an auspicious time to own a property. Like every year, this year also developers are offering many gifts or offers to woo buyers across Delhi- NCR.

  • Impact of GST on Real estate Sector

    Elan Miracle Sector 84 Gurgaon   Copy

    NewsMantra Bureau

    Goods and Services tax is going to be implemented from the 1st of July. GST is being considered as one of India’s most revolutionary tax-related reforms. GST will eliminate conflicting and cascading taxation structures like VAT and service charges in real estate. GST law will increase the margin in the hands of developer by eliminating the above-mentioned taxes.

  • Maharashtra RERA: Deadline for projects' registration not to be extended

    Mumbai Rera

    Chairman of Maharashtra’s Real Estate Regulatory Authority, Gautam Chatterjee has said that the deadline for registration of projects under the real estate act will not be extended beyond 31st July. 

    Speaking to reporters in Mumbai today, Mr. Chatterjee said that the new law will bring in transparency in the system. The Real Estate (Regulation & Development) Act-2016 came into force with effect from 1st of May this year, and Maharashtra was one of the first states to notify its rules and establish the regulatory authority. 

    Mr. Chatterjee said that over 300 applications have been registered so far, while nearly 20,000 are expected to register online by end of this month.

     

  • RERA Registration: Haryana builders seek 3 months extension for registration

    RERA Registration

    After the completion of the deadline on July 31 for RERA registration ongoing projects, several projects are still to be registered yet. The Haryana based realtors are expecting an extension in the deadline for the registration of the remaining projects under H-RERA. They have come across, approaching 3 months of extension in the deadline to the government.

  • RERA's effect on ongoing projects

    Elan Miracle Sector 84 Gurgaon   Copy

    Gurgaon: The Real Estate (Regulation and Development) Act (RERA) which has come as a protector of home buyers, and as a much awaited change which will boost business in the real estate industry.

  • Will Budget 2018-19 Boost Ready-to-move Property Absorption?

    Budget Rectification

    Photo Courtesy: Internet

    With Union Budget 2018-19 just around the corner, the Indian real estate market waits with bated breath to see how it can potentially benefit. In fact, it has never been a better time for aspiring homebuyers, as there is a more than generous stock of ready-to-move housing options across most Indian cities.

    Ready properties are the pièce de résistance of 2018, not least of all because they are the most de-risked purchase proposition, do not attract GST and offer instant gratification. After all, owning a house is the culmination of almost every Indian’s lifetime efforts and aspirations. The sense of security, achievement and social stature linked to home ownership is what has for long been driving the demand for – and supply of - residential developments across India. All major roads, railway stations and airports are flanked by hoarding advertising real estate projects.

    With a massive urbanization rate of more than 30% (estimated to reach 40% by 2030), the demand for homes in India an assured long-term story in which chapters will continue to unfold. However, due to wavering economic growth, an uncertain job market and rising property prices, residential real estate demand has remained largely subdued over the last few years. Paradoxically, developers continued their protracted project launch spree - leading to a huge unsold inventory pile-up.

    Due to the structural changes and policy reforms such as demonetization, RERA and GST, the new launch activity slowed down in 2017. Nevertheless, December 2017 saw more than 7 lakh units remaining unsold across top 7 cities of India. Under the RERA regime, stringent guidelines and financial discipline have now been force-fed into the systems and processes governing the real estate business in India. Unsurprisingly, developers are now focusing on completing existing projects to avoid being entrapped in compliance hassles.

    This laser focus on project completions is a blessing for homebuyers. The mammoth unsold inventory has already turned the Indian real estate arena into a strongly buyer-favouring market. Now, at the beginning of 2018, there is a huge opportunity to cherry-pick ready-to-move-in house as around 1.7 lakh unsold units are likely to get completed in this year. With the right kind of boosts to the Indian consumption story, we could see a massive return of buyers who are hoping to snap up ready-to-move homes but need that last decisive ‘last-mile’ incentive push.

                                                               Graph

    The above graph confirms that a large chunk (67%) of unsold inventory to be completed in 2018 will be added in NCR, MMR and Bangalore.

    • Over the past few years, NCR - largely an investor-driven market - has been a front-runner a mong the top 7 cities in terms of churning out new residential launches. However, developers’ focus on completions has been minimal. Now, the entire new launch activity seems to have shifted to a slow track due to the combined effect of demonetization, RERA and GST. Among NCR’s many developers, those that had been relying of deceit and misinformation are now having a rough time as the real estate business as a whole re-orients itself to the rebooted market conditions where focus on project execution has become a paramount consideration.

     

    • MMR’s real estate market is driven by a good mix of investors and end-users, and has also been flooded with new launches over the past few years. While the many structural changes and policy reforms in the recent past have taken the sheen off the high-end and luxury real estate segment, mid-range and affordable housing projects will remain in focus in MMR for the foreseeable future. With massive growth potential and huge latent demand in the suburbs and peripheral areas, housing requirements in these regions will make a comeback sooner than in other parts of the city.

     

    • Bangalore, largely an end-user driven market, has always adjusted as per market guiding circumstances and developers have accordingly restricted new launches to align with realistic absorption potential in such a market. This time around too, Bangalore’s developers are concentrating on completing existing projects rather than adding new ones to the market.

    In terms of affordability, buyers scouting for ready-to-move-in homes priced below INR 80 lakh will have a bracing spread of options across the top 7 cities. Overall, buying ready-to-move-in properties in a buyer-favouring markets is always beneficial:

    • No execution delay
    • Attractive pricing
    • Buyers can relocate immediately to save on additional rentals
    • WYSIWYG (what you see is what you get)

    The major disruptive structural changes and policy reforms are now behind us. As 2018 begins on the right note of transparency and the right approach by developers, ready-to-move-in homes are indeed the flavour of the season. If Union Budget 2018-19 takes the right direction for the Great Indian Middle-Class, the sales uptick of these properties could be very significant indeed.

    (views by Anuj Puri, Chairman – ANAROCK Property Consultants)