Ready Reckoner ups rates, but only 7%

From April 1, ready reckoner (RR) rates for different properties in Mumbai have increased by an average of 7% compared with 15% in the previous year. Considering that the annual hike is usually around 12% to 17%, this is the lowest hike since 2010, according to revenue department sources. The RR rates directly affect property prices as the buyer as well as the seller have to pay a stamp duty based on these rates.

 Source: The Indian Express, Saturday 2 April 2016

‘Over $1 trillion to enter global real estate market in 2016’

Global realty market is likely to witness an investment of more than $1 trillion this year, up 6% from 2015, as investors continue to find real estate appealing on relatively higher returns, according to property consultant CBRE survey.

North America is the most popular destination for investment (48 per cent), ahead of Western Europe (26 per cent). London, Los Angeles and Sydney are top regional targets of investors.82% investors indicated that their buying activity would increase or remain same as in 2015.Approximately $ 1.16 trillion of capital targeting property investment in 2016 – an increase of 3% from 2015 levels

Source: The Indian Express, Saturday 2 April 2016

New entrants may push demand for office space, warehousing

As e-commerce players need to deliver products quickly to their customers, there is a sense that the most important clientele segments for them are in the tier-II and tier-III cities.On Tuesday, the government clarified its policy on foreign direct investment (FDI) in e-commerce and online retail consumer businesses that operate as marketplaces. While it allowed 100% FDI through automatic route, it also expanded the scope of marketplace to include support services (to sellers) like warehousing, logistics, order fulfillment, call centre, payment collection and other services.

If the e-commerce industry is set to be a direct beneficiary of the same, real estate experts see it as an opportunity for the sector and say that the permission for 100% FDI in marketplace e-retailing will lead to a pick-up in demand for office space, warehousing and logistic spaces as there will be new entrants in the market.

Source: The Indian Express, Saturday 2 April 2016

Revised DP draft proposes that TDR be allowed across Mumbai

A base floor space index (FSI) of 2 may be fixed for the entire city and the civic authority may allow transfer of development rights (TDR) to be used anywhere in greater Mumbai. Currently, the base FSI is 1.33 in the island city and 1 in the suburbs, while TDR is allowed to be used only north of the plot from where it is generated. These are some of the drastic changes the BMC has made while revising the city’s draft development plan (DP), which it plans to publish next month for public discussion.

Source: The Times of India, Thursday 7 April 2016

Now, wet waste treatment mandatory for all buildings

Taking note of the flak it received from the state government, the High Court as well as citizens over the poor waste management system which led to the fire at the Deonar dumping ground, the BMC has made wet waste treatment mandatory in all buildings in the new development control regulations. Apart from the new buildings, the civic body is also planning to impose the same regulations on existing buildings as well.

Source: The Indian Express, Thursday 7 April 2016

 Zara swings record lease deal in Fort

A heritage building in the HutatmaChowk area in south Mumbai will soon be the largest retail space in a high street for a foreign brand in the country.In a deal touted as the biggest transaction of its kind in this segment, Zara, the Spanish clothing and accessories retailer, has taken on lease 50,000 sq ft carpet in Ismail building. Zara will pay around Rs 2.5 crore a month as lease rental to the building’s owner, Supariwala Exports. The deal works out to over Rs 450 a sq ft per month.

Source: The Times of India, Tuesday 12 April 2016

 Demand from smaller cities keeps Housing credit strong

The total housing credit outstanding in India as on December 31, 2015 crossed Rs.11,90,000 crore for an annualized 18% growth in the first nine months of FY16 because of a pickup after the second quarter, supported by disbursements against construction-linked loans, growth in the small-ticket affordable-housing segment, demand from tier II and III cities, and some increase in primary sales during the festive season.

Source: The Economic Times, Wednesday 13 April 2016

Ikea likely sign Rs 1,000cr deal for first store in city

Swedish furniture giant Ikea is on the verge of signing a mega deal for its first store in Mumbai in what property experts describe as the “largest foreign direct investment (FDI) in retail real estate by a retailer in India“.Ikea is likely to ink a Rs 1,000 crore plus agreement with Mumbai-based builder Vikas Oberoi to set up a 3.5 lakh-squarefoot store at the junction of Western Express Highway and Dattapada Roadin Borivali (East).

Source: The Times of India, Friday 15 April 2016

 Uniform bldg construction policy likely

The country will soon implement probably the first uniform model bylaws for building permission and constructions across cities to eliminate discrepancies and complexities. Submission of certificates and NoCs to obtain building permits, occupancy certificates and construction commencement orders may be reduced drastically and applicants who have obtained building permits can intimate the local body concerned and proceed with construction work.

One application form has been devised for online submission by the building proponents (applicants) to the urban local body instead of applying to various agencies like the Airports Authority of India, environment and forest departments, MMRDA, railways and defence.

Source: The Times of India, Friday 15 April 2016

News Source:

Times of India

Economic Times

Indian Express

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