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Arun Developers, Pune

Arun Park, Opp. Aditya Birla Hospital,
Chinchwad, Pune - 411033

Policy regime nudged fence-sitters to be first-time homebuyers: Niranjan Hiranandani

Policy regime nudged fence-sitters to be first-time homebuyers: Niranjan HiranandaniHe believes that the regulatory aspects have also brought in a safe and secure environment to the sector.Rajesh KurupThe need for secured assets and aspirations to own spacious homes as remote working is fast becoming the new norm is driving sales of residential properties across the country. Further, investors are also warming up to Real Estate Investment Trusts (REITs), Niranjan Hiranandani, national president at National Real Estate Development Council (NAREDCO).In an interview withBusinessLine, Hiranandani, who is also the managing director of real estate firm Hiranandani Group, is of the opinion that the regulatory aspects have also brought in a safe and secure environment to the sector. Edited excerpts:This year, housing sales across major cities have been on the rise? Where is this demand coming from?The disruptive pandemic has predominantly reinforced the value of owned houses. The need for a secured asset that offers stability and safety in crisis is a goldmine investment against volatile assets. The remote working trend further fuel the urge to own a large spacious home in peripheral cities at attractive price points to integrate new normal living conditions.In addition, market dynamics and policy regime are skewed towards nudging the fence-sitters to convert into the first-time home buyers and existing ones to upgrade into luxury homes catalysed by fiscal growth levers.After the initial hesitation, REITs are gaining ground, and despite the pandemic, there were two successful public issues?REITs are an alternative option for investment in real estate at a low unit price entry point. It reflects growing confidence in commercial real estate as an asset class. The Indian real estate investor has gradually warmed up to REITs. The two successful public issues are just the beginning of what will gradually grow in investor confidence.Recently Maharashtra Urban Development ministry has amended the Unified Development Control and Promotion Regulations, allowing 5 per cent amenity space for construction in plots. Your comments?The recent amendment (notification is awaited) aims to infuse positivity for commercial real estate development. If up to 5 FSI is allowed for commercial business districts, then the move will be perceived to augment more commercial real estate spaces to be developed, which will create more employment opportunities. This will also foster the development of more commercial business districts (CBDs) in the state, ensuring equal development across and not just the leading commercial cities like Mumbai and Pune. The move should augur well for the state’s economic growth. It will also allow economies of scale to positively impact the viability of commercial projects.A lot of residential projects in the country, including ultra-luxury ones, are marred by delays?The Indian real estate sector was rebooted with structural policy reforms, and the pandemic was a nail in the coffin. The industry suffered from liquidity starving, muted demand, subdued investment, hindered sales velocity, disrupted supply chain, skyrocketing prices of essential raw materials, and acute migrant labour crisis. These challenges uprooted many developers in crisis and stalled up the designated timelines.With mission unlocking, the industry witnessed excellent sales velocity in lieu of fiscal stimulus but the resurgence of the second Covid wave derailed the growth trajectory. The authorities have been considering a timeline extension to cope up with the delays. Many of the branded developers with strong financial discipline and proven track records will fast-track the work progress and assure timely delivery.Covid-19 has shuttered smaller players across various industries, while the stronger, larger entities have survived. Did the pandemic have a similar effect on real estate as well?Any economic crisis – and the Covid-19 pandemic fits the description perfectly – first impacts smaller players across industries, as surviving such challenging situations needs ‘deep pockets. For financially weak players, recent regulatory jolts led to a difficult ground for navigating, and Covid-19 impacted many projects’ profitabilities and viability of the business.The over-leveraged players opt to deleverage by consolidation, joint development, asset-light model, monetisation, mergers to re-anchor the sinking ship.RERA has brought in some amount of transparency and accountability to the sector?RERA is moving in the right direction and is taking the industry to the right aspects of accountability. The regulatory aspect has brought in a safe and secure environment, one in which we see unscrupulous elements being weeded out. Obviously, this also leads to enhanced customer confidence.On Greenbase’s, an industrial and warehousing platform of Hiranandani Group, future plans?Greenbase has been working at delivering a holistic slew of offerings for end-users, and there are geographies where we are already working on creating logistics and light industrial parks.As the vaccination drive gains pace, we are bullish on the Indian economy and the sustained demand for logistics and light industrial parks. Some locations (near Pune, Nasik and Oragadam, Chennai) are ‘work in progress’, while in some other locations, the parks are still on the drawing board.
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Real estate market to touch $1 trillion by 2030: Housing secretary

Real estate market to touch $1 trillion by 2030: Housing secretary​The number of people employed in the sector is also expected to rise to 7 crore in coming years, from 5.5 crore in 2019, he said while addressing a CII event on the real estate sector.Real estate market to touch $1 trillion by 2030: Housing secretary NEW DELHI: The Indian real estate market is estimated to touch USD 1 trillion by 2030 driven by rising demand and various reforms in the past seven years like new realty law RERA, Housing and Urban Affairs Secretary Durga Shanker Mishra said on Wednesday.The number of people employed in the sector is also expected to rise to 7 crore in coming years, from 5.5 crore in 2019, he said while addressing a CII event on the real estate sector. The secretary further said that the states have been asked to soon implement the Model Tenancy Act, which was passed by the Union Cabinet in June this year. Mishra also clarified that the law once implemented by the states will be prospective in nature and all disputes related to rent agreements will be dealt under the old laws of respective states. He pointed out that the real estate sector suffered a "setback" during the first and second wave of the COVID-19 pandemic but said the housing demand has revived. "The size of the real estate sector was around USD 200 billion 2-3 years ago. We expect the real estate market to touch USD 1 trillion by 2030," the housing secretary said. "It is not mere talk and guess work. The trend clearly shows that the real estate sector of our country will touch the figure of USD 1 trillion in the next 7-8 years," Mishra said, while emphasising the importance of this industry in the Indian economy. Citing various reports of property consultants, the secretary said housing demand in the first quarter of this fiscal year has risen as compared to the year-ago period. Talking about the importance of this sector in employment generation, he said: "Around 5.5 crore people were employed in the sector as per 2019 figure. Our predictions for the future is that around 7 crore people will be employed in this industry." That apart, Mishra said the real estate sector creates demand for about 270 other industries, including cement and steel. "Therefore, real estate is an important sector of the economy. Nobody should have any doubt about it," he stressed. Hence, Mishra said, the government has given a lot of focus on this sector in the past seven years and has taken measures in every budget since 2014. The secretary said it is estimated that around 88 crore people will be living in urban areas by 2051 as against the current 46 crore, creating huge potential for real estate development. Describing the enactment of new realty law RERA as the biggest reform, he said the new legislation has taken the industry to another level. "RERA has transformed this sector and changed the perception of this industry. Consumers now have confidence that their investments are safe," Mishra said. Sharing the success story of RERA, he said around 67,000 projects and 52,000 property agents are registered under this law. More than 70,000 cases have been disposed of by the real estate authorities established under this law. All states, except West Bengal have implemented this law, he said, adding that the ministry has written to the state government regarding this. He listed Model Tenancy Act as another reform that would create a lot of demand for rental housing in the country. The secretary said the ministry has asked all states to implement this law at the earliest. Referring to media reports raising concerns related to the fate of traditional 'Pagdi agreements' in Mumbai, Mishra said the new law will be prospective and not retrospective. Therefore, he said the existing rent agreements will not come under its ambit. "It will be prospective in nature." The provisions of this Model Tenancy Act clearly mention that all disputes related to existing rent agreements will be dealt under the old laws even after their repealment, the secretary emphasised. Mishra also talked about reforms for ease of doing business in the real estate sector. He said the government has taken steps to provide online permission for construction, which will eliminate delays and corrupt practices. The secretary highlighted other reforms like introduction of Real Estate Investment Trust (REIT) and the launch of stress fund named SWAMIH to complete stalled housing projects. Mishra said the Affordable Rental Housing Complex (ARHC) scheme launched by the government to develop homes for migrant workers will also create business opportunities for the sector. The secretary asked the real estate industry to focus on affordability of residential properties to attract buyers from lower and middle income group. Neel Raheja, Co-Chair, CII National Committee on Real Estate and Housing and Group President of K Raheja Corp, talked about high government charges and finance cost in the sector that impacts affordability. Anshuman Magazine, Deputy Chairman of CII Northern Region and Chairman and CEO - India, SE Asia, Middle East & Africa at CBRE, expressed confidence about the future growth of all the segments of the real estate sector. Mohit Malhotra, Managing Director & CEO of Godrej Properties Ltd, said the industry needs to attract equity capital to fuel growth. He also stressed on improving productivity by use of latest technology. Malhotra said the real estate sector is getting consolidated from highly fragmented. Amit Gossain, Chairman, CII Urban Development and Smart Cities Council and Managing Director of KONE Elevators India Ltd, said the COVID-19 pandemic has brought "short-term blip" in the sector and felt that long-term growth potential remains intact.Follow and connect with us on Twitter, Facebook, Linkedin
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PE investment in real estate touch $2.9 billion in H1 2021: Report

PE investment in real estate touch $2.9 billion in H1 2021: ReportThe total private equity inflows in the real estate sector are expected to be about USD 5 billion in 2021, a 4.1% increase from 2020, according to the company.PE investment in real estate touch $2.9 billion in H1 2021: ReportNEW DELHI: Private equity investment in Indian real estate touched USD 2.9 billion in the first half of 2021, more than a two-fold increase from H1 2020, according to recent report by Colliers.The total private equity inflows in the real estate sector are expected to be about USD 5 billion in 2021, a 4.1% increase from 2020, according to the company.Office assets accounted for 35% of the total investments in H1 2021, followed by industrial and warehousing assets with a share of 27%. Investors are viewing the current scenario as an opportunity to snap up properties at attractive valuations."The investment trends reflect an interest in broader classes of assets and structures. Deal types include, forward purchase of office assets, formation of platforms and acquisitions with development risks in office assets, opportunistic acquisitions of retail assets, industrial assets including warehousing and data centers, large credit transactions for portfolio acquisitions, and development financing," said Piyush Gupta, MD, Capital Markets & Investment Services (India), Colliers.During H1 2021, about 86% of the total investments in the office sector were in land or projects under-construction. Investors continue to scout for either land or assets in under-construction stage, as they look to build their portfolio for a future REIT listing. This is due to limited availability of quality rent-yielding assets at attractive valuations, as most of the large developers are already in partnerships with institutional investors.Investments in retail assets accounted for 29% of the total investments in H1 2021. Despite Covid posing a significant disruption to retail businesses and causing a major drop in rental revenues, investor appetite remained intact for exposure to stabilized retail assets as well as for investments in ground-up developments in partnership with selective developers."For the remainder of the year, we also believe that last-mile funding and investments into distressed housing assets will gain traction whilst many investors are also looking at investing in attractively priced assets, which may not be the current flavour but are expected to witness increasing demand post covid-19 as demand picks up for them," said Siddhart Goel, senior director & head, Research at Colliers India.
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How to buy a property on which home loan is pending

How to buy a property on which home loan is pendingA buyer needs to procure no-dues and other approvals from banks and government authorities before buying a property on which there is an existing home loan.How to buy a property on which home loan is pendingNEW DELHI: Buying a resale property appears much simpler than buying an under-construction unit. However, there are some crucial checks and documents requirements before you enter into a legal contract. Every property transaction involves two key components - one is the physical verification of a property and the second is its legal due diligence. Sometimes, the second part is more important than the first as it ensures your investment is safe and without any legal dispute.If you are planning to buy a resale property from a seller who has already taken a home loan on the property, then it is important for you to perform certain due diligence. Firstly, check whether the existing owner has any pending home loan, electricity and water charges or other dues on the property. You also need to check whether the property is owned by a single owner or it is shared. One should also check whether the property is leasehold or freehold. If the property is leasehold, then the seller needs NOC from the government authority.You can either choose to ask the existing buyer to clear the home loan or if you are also planning to take loan to buy the property then you can apply for transfer of seller’s loan to your name. The bank will take your KYC and check your eligibility and then check the seller’s file and transfer the loan to your name.Deepak Chowdhury, partner, Induslaw, explains, “The buyer must insist on a copy of all the title documents of the property for conducting a title due diligence to identify the risks, if any, on the property. The buyer will also require the title documents if he intends to obtain a loan for financing the acquisition of the property. The buyer should also request the seller to obtain a statement of loan outstanding (principal and interest (including penalty interest if any)) due from the bank wherein the home loan is pending, and a confirmation of the property documents mortgaged with the bank.”Documents to checkThe buyer has to verify all title documents in relation to the property:(i) Deed of transfer in favour of seller and the property tax certificate issued by the concerned municipality in the name of the seller. In case the property is a flat/apartment situated in a high-rise building, check if the undivided share of the land over which the building has been transferred in favour of the seller;(ii) Title documents for the past 30 years so that the title of the vendor/builder of the property can be established. Also procure a certificate of encumbrance from the concerned sub-registrar to assess all the previous title transfers and encumbrances on the property.(iii) Sanction Layout, Building Permit, Occupancy Certificate, Zoning Regulation, Fire NOC (in case of high-rise building), permission for lifts installed at the building wherein the property is located.(iv) No objection certificate for transfer of ownership and No-dues certificate from the Cooperative Housing Society/RWA of the building or the builder if he maintains the society.(iv) Municipal taxes pending against the property. It would be advisable to also check the dues against the property that may be pending towards the electricity and the water departments. Also, obtain receipts to verify the tax paid by the present owner.(v) An independent search needs to be conducted on show-cause/demand notices pending against the property or the building wherein the property is located.(vi) Check if any litigation is pending against the property or the building wherein the property is located is a subject matter of a litigation against the builder/developer.Is it safe to buy a property mortgaged to a bank?Unless the property is subject to any litigation or exercise of mortgage rights by the bank, it is safe to buy a resale property pending mortgage. However, the buyer needs to insist on the closure of loan and a no dues certificate from the bank prior to purchasing the property. In case the buyer intends to take a loan for acquiring the property it is mandatory that the buyer moves a proposal to the bank from which it intends to avail loan and get a legal and technical clearance as well as obtain a sanction letter from the bank prior to the transaction.Nikhil Varma, founding partner, MVAC-Advocates, Solicitors and Consultant, says, "The procedure to purchase a mortgaged property is not complex and in order to purchase such a property, the purchaser may either close the existing loan, or get a new loan from the same bank to close the existing loan or get a loan from another bank. It is imperative that the purchaser ensures that the seller provides them with the no-dues and no-objection certificates both from the bank and builder/RWA. There are instances wherein the agreement for such a transaction is a tripartite agreement making sure that the bank is aware of such sale and an active party to the same."Getting all the relevant documents is very important as then you can get bank approvals easily and also be able to register your property without any issue.“Buying a house (be it a flat or an independent house) with an existing bank loan requires patience and time. If you are borrowing from a different bank, then one bank can pay to the other bank and take over the existing loan. However, if the bank is the same then internal loan transfer takes place, and you become the new owner after registering the property,” adds Aditya Chopra, managing partner, Victoriam Legalis - Advocates & Solicitors.Make a checklist of the documents you have and then create a list of documents you require from the existing sellers before buying a bank mortgaged property. Pay only the token/booking amount when you have verified the owner, the property and have made sure it is good to buy.Follow and connect with us on Twitter, Facebook, Linkedin
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India expected to grow at 8.3%, says World Bank

The growth rate forecasted for India for 2021-22, the World Bank is an upward revision from its January forecast of 5.4%.Sriram LakshmanIndia's economy is expected to grow at 8.3% for Fiscal Year 2021-22 as per the World Bank's latest projections. This rate, however, masked the damage caused by the "enormous" second wave of COVID-19, the Bank said ...
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India expected to grow at 8.3%, says World Bank

India expected to grow at 8.3%, says World BankThe growth rate forecasted for India for 2021-22, the World Bank is an upward revision from its January forecast of 5.4%.Sriram LakshmanIndia’s economy is expected to grow at 8.3% for Fiscal Year 2021-22 as per the World Bank’s latest projections. This rate, however, masked the damage caused by the “enormous” second wave of COVID-19, the Bank said in its June 2021 Global Economic Prospects released on Tuesday. The world economy is expected to expand 5.6% , the fastest post-recession growth rate in eighty years, but global output will still be 2% below pre-pandemic projections by year-end.The growth rate forecasted for India for 2021-22, the World Bank is an upward revision from its January forecast of 5.4%. However this revision “masks significant expected economic damage from an enormous second COVID-19 wave and localized mobility restrictions since March 2021,” the report says, adding that activity will follow the same but less pronounced collapse and recovery seen in last year’s COVID wave.“Activity will benefit from policy support, including higher spending on infrastructure, rural development, and health, and a stronger-than[1]expected recovery in services and manufacturing,” the report says.For FY 2022-23 growth is expected to slow to 7.5% as a result of the pandemic’s lingering effects on the balance sheets of households, companies and banks and possibly low levels of consumer confidence and heightened uncertainty around job and incomes.For India the massive COVID-19 wave had undermined the sharper than expected rebound in activity for the second half of FY 2020-21 – particularly in services, according to the Bank. Since March, foot traffic around retail spaces has slowed to below a third of what it was in pre-pandemic times.For the world as a whole, losses to per capita income will not be reversed by 2022 for some two-thirds of emerging market and developing economies, the Bank said. Low income countries that have lagged in vaccinations have witnessed a reversal in poverty reduction, with the pandemic exacerbating insecurity and other long-standing challenges.“While there are welcome signs of global recovery, the pandemic continues to inflict poverty and inequality on people in developing countries around the world,” World Bank Group President David Malpass said in a press statement.“Globally coordinated efforts are essential to accelerate vaccine distribution and debt relief, particularly for low-income countries. As the health crisis eases, policymakers will need to address the pandemic’s lasting effects and take steps to spur green, resilient, and inclusive growth while safeguarding macroeconomic stability,” he said.
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land and encroachments after merger, PMRDA gets deposits and staff

Pune: PCMC gets major portion of land and encroachments after merger, PMRDA gets deposits and staffRuling BJP in Pimpri-Chinchwad has opposed the move to transfer undeveloped reserved land to PCMC and said Maharashtra government took a unilateral decision on the merger.Manoj Dattatrye MoreWith the Maharashtra state government notifying the merger of Pimpri-Chinchwad Newtownship Development Authority (PCNTDA) with Pimpri-Chinchwad Municipal Corporation (PCMC) and Pune Metropolitan Region Development Authority (PMRDA), PCNTDA or Pradhikaran will now cease to exist, officials said.“With the government making gazette notification of merger of PCNTDA or Pradhikaran area with PCMC and PMRDA, PCNTDA has now become history,” said PCNTDA CEO Bansi Gawli.As per the notification, the PCMC will get all leased land, all land reserved for public purposes and all encroached land. The ruling BJP in Pimpri-Chinchwad has opposed the move to transfer undeveloped reserved land to PCMC.On the other hand, the PMRDA will get PCNTDA’s office, commercial complex, residential complex, fixed deposits and other investments. The PCMC will remain the special planning authority of all PCNTDA areas. “This means building construction permission and powers for approving TDR-FSI will rest with PCMC,” officials said.Speaking to The Indian Express, Gawli said, “Of the 1,875 hectare of land with PCNTDA, the PCMC will get at least 1,300 hectares of land while PMRDA will get around 375 hectares. This is our initial estimate. The entire process of distribution of land will take around 5-6 months.”Also Read |Merger with PCMC, PMRDA: PCNTDA ceases to exist; PCMC gets major portion of land, PMRDA gets deposits, staffGawli said all the land in the Pradhikaran area had been leased out to the public. “The leased land is around 1,000 hectares which will go to PCMC. Besides, there is 240-hectare land where encroachments have come up. These encroachments will now be on PCMC’s lookout. And there is land reserved for public purposes. It will go to PCMC. In fact, vast areas of developed land are already with PCMC,” he said.– Stay updated with the latest Pune news. Follow Express Pune on Twitter here and on Facebook here. You can also join our Express Pune Telegram channel here.Gawli said all PCNTDA employees will be transferred to PMRDA. “We have permanent staff strength of around 50. And around 100 temporary as well as on deputation staff. The permanent staff will be transferred to PMRDA. As for the rest, the PMRDA will take the call,” he said.“We don’t have any loan. But the liabilities like bill payment to contractors will be taken over by PMRDA. The total deposits of Rs 150 crore will go to PMRDA,” he said.While PCMC will be the special planning authority in many sectors of the Pradhikaran area, PMRDA will get only a small amount of land to look after. “PMRDA will have jurisdiction over only four sectors. This means the building permission, TDR and FSI will be decided by PMRDA in these four sectors. On the other hand, PCMC will have jurisdiction or will be the planning authority in the remaining 38 sectors. Similarly, PCMC will have jurisdiction over three sub-district centres or commercial centres while PMRDA will look after a solitary centre,” Gawli said.The BJP, however, is not happy with the decision to transfer land reserved for public purposes to PCMC. “They should develop the land and then transfer it to PCMC. Otherwise, for developing the land, PCMC will have to spend a lot of money on providing water, drainage, electricity and other amenities,” said BJP MLA Laxman Jagtap.BJP state secretary Amit Gorkhe said, “Pradhikaran was set up for providing affordable housing for the working class. Several acres of land was taken from farmers. This developed land will now go to the PMRDA area. This is an injustice to the farmers.”Gorkhe said the state government did not even take the public representatives into confidence on the merger. “This is a unilateral decision. We are against it,” he said.Jagtap said the state government has not yet announced what it proposes to do with the land of hundreds of farmers acquired by PCNTDA. “For decades, they have been awaiting compensation,” he said.Reacting to this, Gawli said, “As per the notification, the compensation in terms of 12.5 per cent development to farmers will have to be decided by the authority in which their land exists. For instance, if the land is in the possession of PCMC, then it will have to give compensation to the farmer.”
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Government to look into builders' demand to boost realty sector:

Government to look into builders' demand to boost realty sector: Housing secretaryNAREDCO's representatives made several demands before the secretary to revive both demand and supply in the sector that has been badly affected by the COVID-19 pandemic.Government to look into builders' demand to boost realty sector: Housing secretaryNEW DELHI: Housing and Urban Affairs Secretary Durga Shanker Mishra on Friday said the government will look into various demand of the real estate industry, including an extension of timeline for completion of projects by 6-9 months.He highlighted various initiatives taken by the government in the past seven years such as development of 1.12 crore houses under the Prime Minister Awas Yojana (PMAY), launch of the Affordable Rental Housing Complex scheme for migrant workers, 'infrastructure' status to affordable housing, and 100 smart cities. Mishra was addressing a webinar organised by realtors body NAREDCO. NAREDCO's representatives made several demands before the secretary to revive both demand and supply in the sector that has been badly affected by the COVID-19 pandemic. The association sought extension of timeline for completion of projects by 6-9 months under the realty law RERA, extension of all building permissions till March 2023, rationalisation of government taxes on real estate, and control of rising prices of cement and steel. It also sought reintroduction of interest subvention scheme, grant of input credit tax on GST paid in leased commercial real estate, suspension of insolvency law for some more period, and an online environment clearance system. Responding to the demand of extension of timeline for project completion, Mishra assured that he will "go in detail" to understand the matter. "If need be, we will take this matter to RAC (RERA Advisory Council)," he said. However, the secretary did mention that this relief was given last year because of the imposition of the national lockdown. On high taxes levied by the central and state governments on real estate, Mishra directed the ministry's senior officials to examine the matter in detail. "We will try to reduce government levies," he said. Regarding a rise in prices of steel and cement, Mishra said he took up this issue with the ministry's concerned and would discuss the issue again. On the PMAY, he said 1.13 crore houses have already been sanctioned and out of that, 48 lakh have been completed and handed over to the people. The secretary informed that India's ranking in ease of doing business related to construction activities improved to 27 from 186. He said the new ranking is expected any time and expressed confidence that "we will be in top-20". The secretary said the real estate sector contributes seven per cent to the gross domestic product (GDP). It is a USD 200-billion industry and set to become a USD 1-trillion sector with rapid urbanisation, he added. Emphasising on affordable housing, Mishra said the highest housing demand is in economically weaker section (EWS) and low-income group (LIG), and observed that the millennial also wants 2-3 BHK flats and not bungalows. Talking about the Central Vista Project, Mishra said the new Parliament building will be ready next year. He also rubbished criticism about this project. At the outset, NAREDCO President Niranjan Hiranandani said the construction activities have slowed down because of the second wave, as only 50 per cent labourers are working on sites. He demanded that timeline for completion of projects should be extended as it was done last year. NAREDCO Chairman Rajeev Talwar said all permission related to the development of projects should be valid till March 2023. Tata Housing MD and CEO Sanjay Dutt expressed concern about the abnormal price rise in cement and steel. He said steel prices have more than doubled while cement rates have gone up by 50-70 per cent in the past one year. Dutt also pitched for reintroduction of subvention scheme, under which builders agree to pay EMI on the behalf of homebuyers for a certain period. Neel Raheja of K Raheja group put forward demand related to commercial real estate and sought inputbtax credit benefit. Rajan Bandelkar from Naredco Maharashtra said the second wave has more impact on the sector than the last year's first wave. He demanded extension of timeline for project completion by 6-9 months as well as suspension of insolvency laws for some period. Ashok Mohanani, president of NAREDCO Maharashtra, was also present in the meeting. NAREDCO is one of the leading associations for the real estate sector with around 5,000 members.Follow and connect with us on Twitter, Facebook, Linkedin
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‘Big brands are cornering housing mkt’

Pune: A report by real estate consultancy Anarock has found that branded real estate projects, of major listed and unlisted players, are taking up a significant share in the housing market. The report said customer preferences shifting, and RERA seeking more compliances, played a major role in the shift awat from local, standalone players. The report said the share of listed and unlisted players in the real estate market across the top cities in India went from 17% in 2017 to to 40% in the first three quarters of the 2020-21 fiscal. Anarock added the shift started with notification of RERA. “After the roll-out of structural policies including RERA and GST, organized and branded players’ dominance has risen exponentially,” said Anuj Puri, chairman of Anarock. “While buying a home, customers expect and demand trust, transparency, as well as on-time delivery of their homes. RERA helped raise awareness for customers,” said Rohit Gera, MD of Gera Developers.https://timesofindia.indiatimes.com/city/pune/big-brands-are-cornering-housing-mkt/articleshow/82957156.cms
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3-5% price gap between ready and under-construction homes: Report

TNN / May 8, 2021, 23:58 ISTPune: A report on real estate prices for ready-to-move (RTM) and under-construction (UC) homes by consultancy firm Anarock has revealed that the gap between the prices for both has shrunk to around 3-5% in 2021 against up to 12% in some markets in 2017.UC homes generally attract lower rates than RTM homes across major real estate markets — the four metros, plus Pune, Bengaluru, and Hyderabad, the report said.In some markets, such as Pune and the Mumbai metropolitan region, RTM homes used to cost around 12% more per square feet than UC homes in 2017. By the first quarter of 2021, that gap has shrunk to 3% for the Mumbai metropolitan region and the National Capital Region, while the gap in Pune is slightly higher at 5%.“People are shifting more towards RTM homes these days as new homebuyers and investors are concerned about uncertainties in construction of new projects as well as projects stalling during construction,” said the head of a real estate major based in Pune.“The fact that RTM homes does not attract GST has been an added attraction, even the price gap between RTM and UC homes has eroded substantially - from 9-12% in 2017 to just 3-5% by Q1 2021. The shrunk price gap works well for end-users as well as investors. End-users can see what they buy and save rent by moving in immediately, while investors focused on steady rentals can start earning right away,” said Anuj Puri, chairman, Anarock.
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The Trump Organization bullish on Indian real estate: Donald Trump Jr

The Trump Organization bullish on Indian real estate: Donald Trump JrNew Delhi: The Trump Organization is bullish on the Indian real estate, which is its biggest residential market outside the North America, its Executive Vice-President Donald Trump Jr. said on Saturday.New York-based The Trump Organization, which is a venture of former US President Donald Trump, entered into Indian real estate market through a partnership with Mumbai-based Tribeca Developers.The US firm and Tribeca have tied up with local developers, including the Lodha group, to build luxury projects under 'Trump' brand. So far, four luxury projects have been announced, of which one in Pune is already complete."I have been bullish on the (Indian) market for a long time," Donald Trump Jr said when asked about his future projects in India.He was appearing as a guest in a talk show with Kalpesh Mehta, the founder of Tribeca Developers, being organised by Alchemist.Trump Jr did not disclose about the company's future projects in India.The Trump Organization and its India partner are developing luxury residential properties of global quality and standards, he said.Amid the global pandemic COVID-19, Trump Jr said there has been a "dynamic shift" in real estate globally, especially in office market because of work from home and remotely.He said one has to see how it plays out post pandemic.When asked about the current market scenario, Mehta said the Indian real estate sector was reviving after the first wave of the COVID-19 pandemic but the recovery process has taken a hit because of this second wave.Maharashtra property markets had a strong recovery compared to the other markets, he said.Mehta said the real estate market will see a sharp growth once the pandemic gets over.In India, The Trump Organization has already completed a luxury project in Pune partnering with Panchshil Realty.It tied up with Lodha group in 2014 for housing project in Mumbai which is currently under construction.In November 2017, Trump Tower was launched in Kolkata comprising 140 ultra-luxury apartments and being developed by Unimark Group, RDB Group and Tribeca Developers.The fourth housing project at Gurugram, Haryana, launched in 2018, is being developed by realty firm M3M.Besides Trump Towers, Tribeca is independently developing few projects in partnership with other builders.This story has been published from a wire agency feed without modifications to the text.Subscribe to Mint Newsletters
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Pune real estate sector in need of government intervention

View: Pune real estate sector in need of government interventionWhile things are not as bad as initially feared, the Indian real estate sector has suffered greatly from the COVID-19 pandemic. Pune was no exception - like other cities, Pune also saw a complete halt in construction activity during the first pandemic lockdown period.After the relaxations, we did see construction activity pick pace gradually. In fact, many previously delayed projects were getting completed in the last year despite the pandemic.Even now, when cases are rising in the Pune Municipal Corporation (PMC) and Pimpri Chinchwad Municipal Corporation (PCMC) regions, the partial lockdown in Maharashtra allows at least construction activities where workers are present at the site.Large and medium-sized developers are able to take the necessary precautions at their sites, and can to some extent sustain their workers even during a slow construction period. However, smaller developers are in trouble - apart from lack of funds, smaller projects do not have enough space for labour camps.Spiralling Construction CostsIt is not just the lockdowns that are giving developers a hard time. Rising prices of cement and steel over the last one year have been a serious concern for developers. Developers have repeatedly sought the central government's intervention in the cartelization by cement and steel manufacturers which is leading to unchecked price hikes.The sudden and continuous upsurge in prices of steel, cement and other key raw materials used in construction has massively increased the overall construction cost for developers. This is a huge burden for all players - but again, it is the smaller, cash-starved builders who are most affected.Everyone Pays the PriceUnchecked construction costs ultimately impact project deliveries and result in stalled projects in many cases. This has negative consequences for all stakeholders. Developers are challenged to incorporate the additional construction costs without adding further to the burden of their customers. Homebuyers find property prices steadily going beyond their budget. And the government loses stamp duty and registration revenue which it can collect with better sales.We have already seen that government intervention can have very positive outcomes. The recent decision to keep the RR rates unchanged is much appreciated, but it was the limited-period stamp duty cut by the Maharashtra government which had boosted housing sales in PMC and PCMC significantly. Asking for an extension by few more months to keep the momentum going is perfectly justified.The current situation is extremely negative for real estate developers - not just in Pune, but across India. We earnestly hope that the government will consider supporting the sector much more.The real estate industry employs more than 40 million workers, supports more than 250 associated industries, and is a major contributor to India’s overall economic growth.Moreover, housing is a basic necessity and government intervention is very essential - especially in unprecedented times such as the pandemic.- By, Akash Pharande, Managing Director of Pharande Spaces
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Xanadu forays into Pune, eyes ₹1,000 crore sales

Lalatendu MishraWith more real estate developers outsourcing their sales and marketing functions to experts, Xanadu Realty, a sales and marketing solution provider for real estate companies, has announced its foray into the Pune market after expanding its operations to Bengaluru last year.“Having secured four projects from three clients in Bengaluru last year, we are expanding the team there to 125 professionals this year. Besides, we are entering into the Pune market which offers vast potential for growth,” said Vikas Chaturvedi, CEO, Xanadu Realty.The firm has on boarded Kumar Properties and House of Abhinandan Lodha as its clients in the Pune market.The Mumbai-based firm said last year it generated sales of more than ₹2,200 crore for its business partners the Mumbai Metropolitan Region (MMR) market and would more than double the sales volume this year through geographical expansion.In Pune, the company plans to have 100 people with a sales target of ₹1,000 crore. Already 37 people have come on board.“Overall, we are on an expansion mode. We are increasing the team in MMR from 500 to 750 people with a sales target of ₹4,400 crore, if the COVID situation improves from August. We are expecting ₹750 crore sales from Bengaluru this year and we are hopeful about the rebound of the real estate business due to end-user demand,” Mr. Chaturvedi said.From working with four partners previously, the company last year saw more than 12 clients across 25 projects in MMR including clients like Hiranandani Group, Runwal, Raunak Group and the House of Abhinandan Lodha.He said stable real estate prices, low interest rates, and government sops would continue to spur demand from the end-user segment.
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Kharadi soc residents keep nearby road’s trees drip-irrigated through the lockdown

Kharadi soc residents keep nearby road’s trees drip-irrigated through the lockdownVijay ChavanSimple use of overhead tank, pipe laid till stretch of greenery planted by the PMC ensures that it flourishes despite lack of official maintenanceThe state government had launched its Green Maharashtra drive with an aim to plant 50 crore trees. Pune Municipal Corporation (PMC) had also set its own target to plant around three lakh trees — and accordingly, had also executed the plan by planting more trees than this target. Several open spaces and pavements were converted into green patches. However, amid the unexpected outbreak of COVID-19 and the subsequent lockdown since last year, maintenance of these plants has been majorly affected. Several saplings have died due to dehydration, as there was no financial arrangement made to water and tend to them during these months. However, over at the Tuscan Estate Housing Society in Kharadi, where around 400 flat owners reside, things have gone a bit differently. Over the last whole year, they have not allowed a single tree to languish and die on the 150-metre public road next to their society, beside the Radisson Blu Hotel. In fact, to save the PMC trees, these residents have laid a drip irrigation pipeline from their society’s building terrace right up to the pavements. They also ensure a supply of water twice a day to the flora without fail. And, the result is visible. The mortality of the trees is zero and all of them have grown to more than 10 feet in height, making the stretch look verdant, lush and beautiful. Surprisingly, the effort they took is extremely simple and replicable. The residents merely used their common sense and connected an additional supply pipe to their recycled water tank located on the 22-storeyed building’s terrace, which was regularly being used to flush their toilets. This huge gravity force not only saves on electricity charges, but the recycled water also saves precious sources of water. Moreover, intact elements of recycled water also work as natural fertilisers. The residents spent only Rs 20,000 on this one-time infrastructure, making small contributions from their monthly maintenance and some individual donations. Tuscan Estate Housing Society residents (above) funded this initiative themselves; the pipeline (top, L) from their tank to the trees (top, R) uses recycled water in steady supply; PIC: RAHUL DESHMUKHTuscan Estate Housing Society residents (above) funded this initiative themselves; the pipeline (top, L) from their tank to the trees (top, R) uses recycled water in steady supply; PIC: RAHUL DESHMUKHThe idea was the brainchild of 65-year-old resident Dr Umesh Bakane, who retired from an MNC as a fertiliser expert and now works in precasting constructions. He said, “We had noticed that the saplings are being planted every year in the same pit or pavement and dying in a few months due to neglect. We also noticed that the saplings next to the road connected to Magarpatta also faced a similar fate. Many of us suggested taking the responsibility to manually water the plants on a rotational basis. But this was not a sustainable idea. We then decided to expand the network of drip irrigation being used within the society premises. Many like-minded residents supported the idea and executed it without much effort.” Another resident, techie Vivek Gupta, said, “The maintenance staff of the society operate the drip facility, so we are not spending additionally on hiring. Software engineer Vivek Agrawal said, “Even if there is water scarcity across the city, plants on this road never starve. Hardly a few hundred litres of water are used to keep the entire stretch green.” Retired banker Ashok Agrawal added, “Pune city was once known as a Pensioner’s Paradise and hill station. It is now the responsibility of each Punekar to maintain greenery for bringing down temperatures and regaining the lost status of the city.” Similarly, retired HR professional Guruprasad Mahatme said, “There are newly built pavements across this road. We also want to reach those stretches so that more trees can be saved from dying.” Said another techie resident, George Mundackel, “This model could be replicated by other housing societies, too. It will also save our tax money being spent by PMC on re-plantation of trees at the same spots, and further save on precious natural resources like tanker water.” On part of the authorities, PMC chief garden superintendent and Tree Authority member-secretary Ashok Ghorpade said, “This is a unique and innovative idea developed by citizens. We appreciate such efforts from PMC. Such citizen participation is only going to make the city greener and more environment-friendly.” He added that PMC is also taking all possible efforts to save such trees by making arrangements for water tankers to tend to them, with the help of NGOs and civic funds.
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13 House Projects Enhanced by Landscape Design

13 House Projects Enhanced by Landscape Design© Derek SwalwellWritten by Paula Pintosabout 17 hours agoA healthy environment that is also visually appealing in our homes has become increasingly sought when it comes to designing houses and residential spaces, especially during the world’s current context. One of the most successful ways of achieving this is through a thoughtful design of the landscape that complements the built project. The art of landscaping is the arrangement of nature’s raw material elements, like vegetation and planting, combined with nonliving elements, such as exterior structures, paving, and decking, in order to create site-specific solutions that enhance the exterior spaces of a project. © Frans Parthesius© Jeremias Thomas© Derek Swalwell© Peter Eckert+ 34The discipline requires knowledge and very specific techniques that many times go beyond the architectural fields per se, and it is why landscape architecture and design has appeared as an expertise branch of design. This has made it very common for architects to resort to collaborative work with landscape offices when working on residential projects.Save this picture!Mr. Barrett's Garden by Daniel Zamarbide. Image © Dylan PerrenoudMr. Barrett's Garden by Daniel Zamarbide. Image © Dylan PerrenoudParticularly in residential landscape architecture, we have found two main ways of resolving gardens, depending on the setting and context on which the project sits. In houses that are already set in natural and green environments, the main objective of landscaping is to tame this exterior greenery as it approaches the house. On the other hand, when the project is located in more dense residential areas, the challenge is to integrate greenery into the house as much as possible through terraces, exterior flooring, and interior courtyards.Related ArticlePamela Conrad on Climate Positive Design, Landscape Architecture, and Carbon Sequestration
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the residential real estate market in India has seen a steady rise in both sales & launches from January-March 2021

By Farshid CooperWith the Covid-19 second wave raging across the country, we are once again faced with partial lockdowns and a slew of restrictions. This is having an apparent effect on the real estate market and delaying key property deals. While there were signs of a significant revival in the property market in the first quarter of 2021, we are seeing a momentary halt in an upward trajectory. We are likely to witness more truncated housing sales and scrapped/delayed property development projects in the months to come.However, not all has been lost and there has to be a forward-looking sentiment because according to Knight Frank India, the residential real estate market in India has seen a steady rise in both sales and launches from January-March 2021. This is 44% more than the same quarter last year the report said. Also, launches were recorded at 76,006 units. Furthermore, the report said that Mumbai and Pune led the table in both launches as well as sales due to discounts in stamp duty charges.Following are a few of the trends that will dominate the real estate market for the rest of this year.Remote Working: The work from home trend is here to stay and people will continue to want more spacious homes in order to have comfortable home offices. Demand in tier 2 and tier 3 cities are expected to be slightly higher as remote working will continue to encourage people to buy houses in their hometowns. Low interest rates may also push people to buy homes in low-density, plotted developments that are located in gated communities and have well-managed infrastructure. However, credit stress among developers is expected to continue and distressed real estate may emerge as a separate category.Low Home Loan Rates: Over the past 12 months, the RBI has cut interest rates and they now stand at historic lows. This has brought home loan rates down to as low as 6-7% in some banks. Both these trends have pushed previously unsure buyers to go ahead and settle on a home purchase. Home loan interest rates are currently at a record 15-year low. Coupled with the bottomed-out property prices and additional discounts and offers by developers, there are some very real savings to be achieved on what is usually the most cost-intensive investment in one’s lifetime. This trend is likely to continue throughout 2021.REITs: Since 80% of the underlying assets in Real Estate Investment Trusts (REITs) are required to be operational as well as income-generating, these have emerged as one of the most viable investment options as compared to conventional property purchase. It has proven to be a workable way of diversifying an investment portfolio in a low-risk manner. Even though the pandemic has put them under the pressure of rental cash flows, a positive long-term scenario remains intact.Availability of close-to-ready inventory: There are various options today in terms of close-to-complete buildings or ready-to-move-in apartments. These eliminate all forms of market risk, therefore proving to be a secure choice. Further on, the pricing of such properties is marginally different from those under construction.Hence, while the second wave may signal another impending slump in the real estate market, there will be a recovery that is aided by digitization. All through last year, scores of property buyers and dealers adapted to online modes of communication and research. The digitization of the property searches/inquiries and negotiation processes continue to help in keeping the real estate market afloat until lockdown restrictions are eased.(The author is MD, Spenta Corporation)
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Shopping mall owners' revenue fell nearly 50% in FY21

https://www.businesstoday.in/current/corporate/real-estate-sector-expects-it-recovery-to-revive-office-space-segment/story/439418.htmlReal estate sector expects IT recovery to revive office space segmentWith nearly 90 million square feet of office space coming up for renewal this year, real estate sector is pinning its hope on recovery of big IT companiesReal estate sector expects IT recovery to revive office space segmentWith nearly 7,400 leases of approximately 90 million square feet coming up for renewals in 2021 across the six major commercial real estate hubs -- Bengaluru, Mumbai, Pune, Chennai, Gurugram and Noida -- real estate firms are now hoping for renewals to pick up on the back of hiring spree in big companies.According to ANANROCK's research and industry data, 2021 has the highest lease expiry pipeline compared to the next two years - 2022 and 2023. An estimated 2022 is likely to see nearly 7,000 leases for approximately 78 million square feet come up for renewal, while an approximate 4,200 leases for over 55 million square feet in 2023."The office market has been under strain since the pandemic came in. However, the IT, ITeS sectors have been on a hiring spree in 2020 and 2021 due to massive business accruals. To accommodate these employees in a future, when we see a gradual return of employees and adoption of hybrid workplace practices by infotech giants, office space demand will grow" said Prashant Thakur, Director & Head - Research, ANAROCK Property Consultants.ALSO READ: SEBI extends timeline for REITs, InvITs regulatory compliancesOut of the 90 million square feet coming up for renewals in 2021, Bengaluru has the highest share of about 37 per cent, while Mumbai is a distant second at 19 per cent. Pune is third with 17 per cent, while Gurugram has a 15 per cent share. Noida has the least number of leases due for renewal, comprising a mere 3 per cent share of both total lease numbers and the overall area, said an ANAROCK report.While the robust hiring by big companies is expected to help the sector with lease renewals, smaller companies might look to give up space."The leases coming up for renewal in 2021 were entered into at much lower rentals - at rates that prevailed 3 to 5 years ago - since office leases are usually signed for the long-term. There is some room for rental escalation in many of these leases," said Thakur.The average vacancy levels in Grade A office space across the top 7 cities is up again, breaching the 15 per cent mark. Rising COVID-19 cases in cities like Mumbai Metropolitan Region (MMR) and Bengaluru, the markets with highest commercial demand, and stringent curfew restrictions are cause for concern, said the report.ALSO READ: Reviving stressed housing projects to improve economic sentiment: SitharamanEmbassy Office Parks REIT, the country's largest player in the office space, in its latest quarterly results said that in FY22 around 9 million square feet of space would be coming up for expiry, comprising only 6 per cent of the revenues and in-place rents, 47 per cent lower versus market rents per CBRE, and 1.4 million square feet likely exits, comprising 4 per cent of revenue, which it says is a 'business as usual' churn and also because of COVID induced exits and portfolio housekeeping. However it said it was on track for additional 14 per cent rent escalations due on 7.7 million square feet across 89 leases in FY2022.Similarly, Mindspace Office parks REIT expects tenant uncertainty over future lease commitments for the next few quarters. It is looking at a total of 2.3 million square feet space lease expiry coming up with 0.5 million square feet in early expiry and the rest 1.8 million square feet in other renewals.However, with most IT firms not cutting back on hiring, industry experts expect a gradual return to normalcy in the overall office space demand during 2022 and 2023, with IT/ITeS sectors among the prime drivers of overall leasing activity in the top cities.ALSO READ: COVID-19 impact: Shopping mall owners' revenue fell nearly 50% in FY21
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Pune beats the real estate blues, clocks highest sale in the country

Pending demand and lowering of stamp duties by the state government is said to be the main reasons for the bullish sales in the city.https://indianexpress.com/article/cities/pune/pune-real-estate-market-2020-update-2021-outlook-7111443/Despite the pandemic and the Indian economy being officially in recession, Pune's real estate industry has seen he...
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"India is well on its way for urban transformation,"

"India is well on its way for urban transformation,"
PM pitches India as investment destination for urbanisation, mobilitySpeaking at the Bloomberg New Economy Forum, he said India and some African nations will witness the biggest wave of urbanisation over the next two decades.NEW DELHI: Prime Minister Narendra Modi on Tuesday pitched India as the most attractive investment destination for those look...
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Realty hot spot series: RAVET - This Pune locality is an upcoming residential area.

Realty hot spot series: RAVET - This Pune locality is an upcoming residential area.
In this week's Realty Hot Spot Series, we take a look at Pune's Paud Road locality. A plus-point of this area is that it is close to prime job hub of Rajiv Gandhi Infotech Park in Hinjewadi, along with many companies nearby. Properties from starting from 1-4 BHK are present in this area priced between Rs 4,900 per sq ft and Rs 12,300 per sq ft. A 2...
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