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Arun Developers, Pune

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

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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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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‘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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