The ascension of Donald Trump to US presidency has clearly rubbed off on his family’s real estate projects in India, with property prices at Trump Towers in Mumbai and Pune rising around 15%.
The Trump Organization currently has three super-premium residential projects under construction in Mumbai, Kolkata and Gurgaon, besides a commercial tower in Gurgaon, making India the second-largest market after the US for Trump’s real estate business.Panchshil Realty developed Trump Tower in Pune’s tony Kalyani Nagar, which was delivered last year. There are 46 super luxury apartments in this project, each occupying an entire floor and spread over 6,100 sq ft.
1BHK flat prices may dip further in outer suburbs
Developers with projects outside Mumbai said incentives for affordable homes announced in the budget will boost the realty market in the city. The budget has eased rules this year to grant 100% tax exemption on profits from selling flats of 300-600 sq ft carpet area rather than the built-up area. This will increase the size of the flats on which a builder can make profits without any tax by 25-30%. In non-metro areas, limit is 600 sq ft carpet area and in metros, 300 sq ft.
Realty Industry welcomes Union Budget 2017
By giving affordable housing an infrastructure status in the Union Budget 2017, the Finance Minister Arun Jaitley has brought cheer in the real estate sector which was witnessing a slump post demonetization. The real estate sector has welcomed the budget with open arms. The Budget offers different incentives and tax benefits that would boost their industry. Affordable housing in particular stands to gain immensely as:
Source: Mid-Day, Friday 3 February 2017
Key reforms in Real Estate will boost the demand
The government’s various policy and reform initiatives over the last two and half years aimed at improving transparency and ease of doing business in realty sector will infuse much-needed confidence and trust in the sector, said industry participants. The moves related to Real Estate Regulatory Act, Real Estate Investment Trusts, smart cities, Goods & Services Tax and the most recent demonetization will eventually boost the demand for real estate, which has the maximum linkages to other industries after agriculture.
Move to ease construction permit norms
The government is seeking help from architects to redesign its construction permits system after the World Bank in its latest ranking on ease of doing business placed India among the bottom five of the 190 countries on this count. In its report, the multilateral lender said India has not managed to shift online its construction permits system which entails more than 29 sets of procedures.
The Department of Industrial Policy and Promotion (DIPP) has asked more than 100 architects to point out the problem areas and is informing them of the steps being taken by the government to ease processes, officials said. The ten criteria for the ranking include getting electricity, enforcing contracts, starting business, registering property, resolving insolvency, construction permits, getting credit, protecting minority investors, paying taxes and trade across borders.
Good times for Commercial segment
The commercial sector, over the last two years, has witnessed a good demand due to a favourable business environment. Hence, experts believe that Mumbai will continue to attract significant attention from domestic and international players for acquiring office space. As the financial capital of the country, Mumbai continues to attract significant attention from domestic and international corporates. The availability of quality office space in prime locations at competitive rentals, an abundant talent pool, a cosmopolitan culture and diverse industry segments, make it one of the key cities for business operations.
The wait just got shorter…for LTCG
In the Union Budget 2017 announcement, the eligible tenure for Long-Term Capital Gain (LTCG) tax on real estate has been reduced from the existing three years to two years. Realty experts recognise it to be a turning point from a long-term perspective.With the reduction, in the holding period of properties under the Long-Term Capital Gains tax, now being two years (from the existing three years), issues pertaining to inventory overhang and sales deficit could be favorably addressed, feel experts.
Maharashtra plans dedicated regulator for co-operative housing societies
In a significant move that will ease handling of housing society affairs, the state government has proposed setting up a separate regulatory authority to oversee them and resolve grievances by drafting a separate chapter dedicated to housing in the Cooperatives Act. The present Act addresses regulation for credit, sugar and all other cooperative societies together. The new chapter will chalk out guiding principles for dispute redressal and give judicial powers to the regulatory authority so that people don’t approach court over minor matters.
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