The Centre has warned states against watering down the real estate regulation law as passed by Parliament and has said any such move will have serious implications, including a public outcry. The Centre has also made it clear that all ongoing realty projects that have not received completion certificate by May 2017 will come under the regulatory mechanism.
On Tuesday, Union housing minister M Venkaiah Naidu told chief secretaries and secretaries of state housing departments that the Real Estate Regulation Act is one of the most consumer-friendly laws passed by Parliament and states have no power to dilute its provisions. The warning comes amid reports of some of the BJP-ruled states such as Gujarat, Madhya Pradesh and Maharashtra diluting some of the provisions, which could end up favouring builders. Even Uttar Pradesh has come out with rules, which do not comply with the central law with regard to ongoing projects. Gujarat has also diluted this provision in favour of builders.
Commerce hub twice BKC’s size planned for Navi Mumbai
If all goes according to plan, a proposed commercial hub on 120 hectares in Kharghar will become the metropolitan area’s biggest such facility and a revenue grosser for CIDCO by way of land sale. The net land use will be about double that of BKC (63 hectares mixed land use). The City and Industrial Development Corporation (Cidco) is the planning authority for Navi Mumbai, in which Kharghar lies.
The proposed facility, touted as BKC-II, will be helmed by a golf course and vast greens of Central Park and will be nestled close to Pandavkada Hills, a part of the Parsik range. BKC-II will be in close proximity to the upcoming second international airport.Cidco on Friday will float a global tender to invite architects with 15 years’ minimum experience to draw up the master plan of the proposed Corporate Park, Kharghar.
Investment scenario likely to improve – `Realty Reforms will drive Demand’
The government’s various policy and reform initiatives over the past two-and-half years aimed at improving transparency and ease of doing business in the realty space will infuse the much-needed confidence and trust in the sector, said industry participants.
The moves related to Real Estate Regulatory Act (RERA), Real Estate Investment Trusts (REITs), Smart Cities, Goods & Services Tax (GST) and the most recent demonetisation will eventually boost the demand for real estate, which has the maximum linkages to other industries after agriculture.Realty developers agree that they will have to adjust to the new environment. However, they are also hopeful that in the long term, all of these factors will help strengthen the sector.
Goregaon in the spotlight
Showing faith in India’s economic growth, corporate occupiers have been in expansionary mode. However, there is a lack of relevant supply at ideal locations in Mumbai.Due to this, some companies wanting to expand are taking up relevant supply at ideal locations in both the eastern and western suburbs such as Goregaon, point out realty experts. Not too long ago, Bandra-Kurla Complex (BKC) and the other Secondary Business Districts (SBDs) had first seen such a movement of occupiers from the Central Business Districts (CBDs).
Post demonetization, rental demand may rise
Rental property market is edging out capital property market now as end users await clarity before deciding on outright purchase. The residential property market across Mumbai, Delhi, Bengaluru, Pune and Chennai has witnessed an increase of 8 to 12% in average weighted rental values against dormant capital value for the year 2016, property brokers said. Real estate, in particular, is bearing the brunt of the currency ban due to a high dependence on unaccounted cash transactions with residential sales taking a direct hit.
Rental market remains strong and transactions have not been impacted due to demonetization. With customers postponing property purchase decisions, rental market will benefit in the short term. We expect rental prices to grow by 5-8% in next one year.
Oval area may get UNESCO heritage tag
The Centre is finally believed to have selected Mumbai’s fabulous Victorian and Art Deco district around the Oval Maidan to be nominated as a World Heritage Site by UNESCO for 2017-18.State urban development secretary Nitin Kareer said the Union ministry of culture has sounded out the state government about Mumbai’s nomination, although an official announcement is awaited.
“The advantage of a World Heritage tag is that it draws high-end tourists, attracts private funds and grants for the upkeep of these buildings. It also pitches Mumbai as one of the great global financial-cum cultural cities,“ said conservation architect Abha Narain Lambah, who prepared the heritage dossier.
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