November 2017 Vol 02
Govt boosts carpet area for middle-income hsg
The Centre, on Thursday, approved the enhancement of carpet area of houses by at least 30% for the middle income group (MIG) category under the Pradhan Mantri Awas Yojana- Urban (PMAYU). This increase in carpet area will cover almost 90% of supply in the housing market and thereby push demand, industry experts said. According to the Cabinet decision, under MIG-I, carpet area eligible for interest subsidy is now 120 sq metres against the earlier norm of 90 sq metres.
People earning between Rs 6 lakh and Rs 12 lakh annually fall under this category and they can avail an interest subsidy of 4% for loan amount up to Rs 9 lakh. In respect of the MIG-II category, carpet area has been raised from the earlier 110 sq metres to up to 150 sq metres. People with annual income of Rs 12 lakh to Rs 18 lakh are eligible for 3% interest subsidy for loan amount of Rs 12 lakh.
Promoters asked to notify MahaRERA, buyers before selling majority stake
In an effort bring about greater transparency in realty, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has asked promoters of construction projects to seek its consent as well as that of two thirds of home buyers before handing over ownership of a project to a third party. The new rules put the onus of seeking such permission on promoters even in cases of forcible acquisition of rights by financial institutions.
As per a circular issued by the regulator on November 8 to builders, the promoter shall not transfer or assign his majority rights and liabilities in respect of a real estate project to a third party “without obtaining prior written consent from two-third allottees (home buyers), except the promoter, and without the prior written approval of the authority.” The circular cites Section 15 of Real estate (regulation and Development) Act to justify such provisions. MahaRERA will approve or reject such requests within one month of submission of application.
Bharti Axa buys Commercial space in BKC for Rs.169 crore
More than two years after the last recorded commercial outright transaction for office space in Mumbai’s business district Bandra-Kurla Complex, Bharti Enterprises’ insurance arm Bharti Axa has bought 65,000 sq ft space at Parinee Crescenzo. The company has paid Rs.26,000 per sq ft, or Rs.169 crore, for the space spread over an entire floor. Bharti Axa is planning to use the space to set up its headquarters and consolidate its operations spread over two-three commercial buildings in Andheri, a suburb of Mumbai.
“The deal was concluded and registered recently, while the Letter of Intent (LOI) for this was signed nearly three months ago,” said one of the persons mentioned above. With this transaction, the building with total 1.1 million sq ft leasable space is completely occupied. While the developer has strata-sold certain part of the building, several lease agreements have also been executed over a period of time since the project was completed in 2013.
For better valuations, Realtors prefer to hold on to Commercial properties
Real estate developers building commercial properties, including office blocks and retail malls, are increasingly looking to lease their properties than selling them on outright basis or monetising them through lease rental discounting (LRDs) given the imminent opening up of REIT market in India. Possibility of better valuation and control through this new option is holding back developers, who have so far stuck to the strategy of either complete or strata monetisation or even selling properties on outright basis.
BMC allows installation of Lifts up to the Terrace in buildings
Civic chief Ajoy Mehta on Monday signed the policy change so that accessibility to terraces increases. The changes are likely to be reflected in the Development Control Rules of 1991 and will be put in place in the upcoming Development Plan 2034. The policy was formed to have more open space accessibility to the citizens.
Interestingly, not just the new buildings in the city, but even existing buildings can have lifts after paying a premium for the lack of available Floor Space Index. Lifts upto the terrace will also be allowed in buildings up to 16 metres in the island city. However, a structural stability report will have to be submitted in case an existing building wants to elevate a lift up to the terrace. Civic officials said in case a building is in an area that has height restriction set by the Civil Aviation, then in such cases the norms of the department will have to be adhered to.
Get certified with an Occupancy Certificate to ensure security of investment!
Prospective buyers should understand that a valid Occupany Certificate is imperative for acquiring a property. Obtaining the necessary documents required for buying a house can be a challenging task. One such challenge is acquiring a document called the Occupancy Certificate (OC). While most first-time home owners may not know about the OC, many others may not realise its importance.
Defining an OC: The Occupancy Certificate (OC) is issued by the local planning authority to certify that the building is fit to be occupied. The OC is issued only after verification of adherence to Building Regulations, Safety Regulations, provision for utilities etc. The OC can only be obtained by the builder after the Completion Certificate is issued by the Planning Authority. Local bodies like the MCGM issue the Occupancy Certificate. In short, OC is an essential document ensuring the security of your investment. While most developers have clear documents and approvals, it is always safe to check and obtain them at the right time.
Importance of an OC: It is a mandatory document to be obtained before you take possession of your home. Without the Occupancy Certificate, it is difficult to get essential services like water connection, sanitation connection, electric connection etc. Banks and Financial institutions do not sanction loans against a flat unless the OC is not issued by the concerned authorities.
Source: Mid-Day, Friday 24 November 2017
Affordable Housing scheme powers Property sales in Q2
New home sales in the country’s top eight property markets increased 5% on year in the quarter ended September, powered by a 24% surge in affordable housing uptake in a boost to the government’s ‘Housing for All by 2022’ scheme, latest data shows. Home sales in key markets including Mumbai, National Capital Region, Bangalore, Pune, Chennai and Hyderabad totalled 64,781 units during the quarter, data from Liases Foras Real Estate Rating & Research shows. This is marginally lower than 64,881 units sold in the previous quarter.
“We have seen a healthy growth in residential sales during September quarter, led by affordable housing,” said Keki Mistry, CEO at HDFC, the country’s largest mortgage lender. “It has a lot to do with the government’s focus on this segment and the fact that it has become more affordable by virtue of growth in income levels and no rise in property price. This growth should continue hereon,” he said. Mumbai Metropolitan Region topped the list in September quarter with 19% increase in sales year on year.
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