The state cabinet gave its final nod to the proposal for development of BDD chawls. It has been decided that MHADA will be the nodal agency to implement the redevelopment scheme. MHADA will frame separate Development Control Rules for the scheme, said a senior minister. It was decided in the cabinet meeting that MHADA will be decide on how much area tenants will get and also the FSI for the redevelopment.
Source: The Times of India, Friday 18 March 2016
KFA auction: Rs 150cr tag repels bidders
The auction of Kingfisher House the erstwhile headquarters of the beleaguered Kingfisher Airlines (KFA) promoted by Vijay Mallya failed to receive any bid. According to preal estate sources, the valuation of Rs 150 crore was not in keeping with the ground reality, which was a price of less than Rs 100 crore.
Source: The Times of India, Friday 18 March 2016
Mumbai mega projects will be completed by 2019: CM
Taking steps towards its aim of transforming Mumbai into an international finance centre, the state government has set the deadline of 2019 for some of the most ambitious infrastructure projects for the city.
The projects include the Coastal Road, Mumbai Trans-Harbour Link (MTHL), Navi Mumbai International Airport, Metro 7 and Navi Mumbai Belapur-Pendhar metro. The government will seek the Centre’s help to finish them with deadline, Chief Minister Devendra Fadnavis said in the state legislative assembly.
Source: The Indian Express, Friday 18 March 2016
Trump Bets on India biz to grow Realty Empire
Donald Trump, the real estate tycoon and front runner for the Republican nomination for President of the United States is eyeing growth in his business in India.His son and Trump Organization’s executive vice-president Donald Trump Jr said that the brand has never been stronger in terms of its work and expansion plans. “We have had tremendous success in India with two amazing projects in Pune and Mumbai and we have a very aggressive pipeline in the North and East,“ he said.
The company has two super luxury projects in the country at present, including a twin tower 46-apartment block with Panchshil Realty in Pune and an under-construction 300-apartment project in the heart of Mumbai at Lower Parel with Lodha Group.The company is targeting Mumbai, Pune, National Capital Region, Bengaluru, Chennai, Hyderabad and Goa among locations with good demand for super luxury properties. It also has business interests in hospitality, golf courses and casinos.
Source: The Economic Times, Monday 21 March 2016
Real Estate deserves `Appreciation’
If statistics are to be believed, then the Residex of the National Housing Bank (NHB) sharply points out that Mumbai’s real estate market has been steady of late and has offered a modest appreciation. The NHB data accessed till March 2015, shows how historically (since 2007) this market has not been witness to any sharp fall in terms of the pricing index. This is a huge endorsement, keeping in mind the downward cycle of the Indian economy in general and the country’s housing market in particular in the said period.
Of course, on the micro front, the trend is location-specific and while certain locations have outperformed in the pricing department, there are other locations that have been hit with a price correction. But the overall estimate of the city’s property market is said to be steady.
Source: Times Property, Saturday 26 March 2016
Office space sees improved demand
Office space absorption witnessed an increase across major metros owing to strong leasing activity and limited supply in key markets in February, said a report by property consultant JLL.
While cities like Bengaluru, Delhi-NCR, Hyderabad, Mumbai saw robust space acquisition, the demand remained stable in Pune, Ahmedabad, Chennai, Hyderabad. Similarly, the residential market in major metros saw an improvement in demand and supply.
Source: The Times of India, Sunday 27 March 2016
Govt to open up IT parks for bank, media back offices
A government resolution, issued last month, has substantially broadened the definition of IT by including a whole new gamut of services that can now be allowed in an IT park such as back offices of “travel and tourism facilitation, TV entertainment channels and sports and travel channels”.The new definition also includes “back office operation” for administrative and support staff of banks, insurance companies, mutual fund and nonbanking finance companies, company such as settlements, compliance, accounting, IT and other technology,” said the resolution.
The government has also increased the floor space index (FSI) from 2 to 3 for IT parks and allowed developers in cities like Mumbai, Navi Mumbai, Thane and Pune to use 20% of the land for commercial and residential purposes. Builders can now al so sell a portion of the apartments to outsiders.
Source: The Times of India, Monday 28 March 2016
Pay Stamp Duty in State via Regular Methods again
Homebuyers in Mumbai and the rest of Maharashtra can now pay stamp duty and registration charges through conventional methods, including demand draft and pay order, following the withdrawal of a circular issued in December 2013 that mandated payment of these levies only through the e-payment system called Government Receipt Accounting System (GRAS).
The Assistant Government Pleader, representing the Maharashtra government, has withdrawn the circular which had resulted in inconvenience to many homebuyers, especially those from the low-income group or residing in rural areas.
Source: The Economic Times, Tuesday 29 March 2016
Buying a home and developing properties get costlier in Mumbai
Buying and developing properties in Mumbai, the country’s most expensive real estate market, is all set to become even costlier. The Maharashtra government has decided to increase ready reckoner rates by an average 8 to 10 percent from April 1 onwards. For some residential pockets in Mumbai, said sources, the hike could be up to 25 percent.
Ready reckoner (RR) rates are ‘market values’ of a property determined by the government for payment of stamp duty in the course of property transactions.These rates also impact the construction cost for development of a property as several premiums and charges collected by civic bodies are directly linked to the RR rates.
Home buyers have to pay stamp duty equivalent to 5 percent of the RR value, or 5 percent of the actual property value, as mentioned in the sale agreement, whichever is more. Sources, however, confirmed that the government might just arrest the hike in commercial belts across Mumbai.
Source: The Indian Express, Tuesday 29 March 2016
Ikea plots west India foray, buys 26-acre Turbhe land for Rs 214cr
Swedish furniture retailing giant Ikea is buying the lease rights of a 26-acre plot on the outskirts of Mumbai from Tata Group company Rallis for about Rs 214 crore. It could be the venue for the label’s first outlet in western India.
The transaction, subject to regulatory approvals, fuels the world’s largest furniture maker’s growth plans in Asia’s third largest economy. The site at the MIDC Industrial Estate at Turbhe on Thane-Belapur road in Navi Mumbai could also house a back-end unit for Ikea, which is known for its huge warehouse-like stores.
Source: The Times of India, Wednesday 30 March 2016
Indian real estate – An overview
The real estate industry occupies a position of prime importance in the story of India’s development. The skyrocketing urban population is already equivalent to the combined populations of USA and UK, with 10 million people moving in to Indian cities each year. This leaves India poised to become a leading destination for real estate globally in the coming years.
The residential segment in India contributes to about 80% to the real estate sector. Reports also suggest that Indian cities need to develop at-least two million houses annually to meet the growing population. The actual number could be much higher as it does not include push in demand from re-development and shrinking size of households. It should be noted that there was a housing shortage in the country of about 18.7 million in 2012. Thus, India needs to develop almost 45-50 million housing units by 2028.
After agriculture and manufacturing, the construction industry is the third largest contributor to the country’s GDP, and still growing. It is believed that by 2020, the Indian real estate market will touch the 180 billion USD mark, complementing the growing demand for office space and residential accommodation.
Source: The Economic Times, Thursday 31 March 2016
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