Affordable Housing to drive Realty in 2018

The affordable housing segment is expected to continue to drive the real estate sector in 2018 with several developers and institutional funds eyeing opportunities in this space led by better returns. The end-user demand in this segment along with the government’s thrust through incentives such as granting infrastructure status is ensuring a rising appetite for such projects across the country.

The established developers are expected to expand their scope of business categories. For instance, some branded developers, catering to the ultra-luxury segment, expanded their focus on compact, efficient, boutique homes for high and mid-level income category of buyers, a trend that is expected to gain further momentum. With both regulatory and taxation policies in the form of Real Estate (Regulation & Development) Act, 2016, and Goods & Services Tax (GST) in place, property development environment will be stable and make the business a more standard process.

Source: The Economic Times, Tuesday 2 January 2018

Parliament session set to commence from Jan 29, Union budget to be presented on Feb 1

The Budget session of Parliament is set to commence on January 29 and the Union Budget for 2018-19 will be presented on February 1, the Cabinet Committee on Parliamentary Affairs (CCPA) recommended on Friday. President Ram Nath Kovind will address the joint sitting of the Houses on January 29 and the Economic Survey will be tabled on the same day, parliamentary affairs minister Ananth Kumar said. The first phase of the session will continue till February 9. After a recess, Parliament will meet again from March 5 to April 6, Kumar said. The recommendation for the Budget session dates were made by the CCPA headed by home minister Rajnath Singh, which met here. It will be sent to the President.

 Source: The Times of India, Saturday 6 January 2018

Pre-launch projects are the best buy

Buying a house is a cost-intensive process, where the down payment alone can eat up a middle-class family’s entire savings. Hence, pre-launch projects are the best bet as it comes with various lucrative offers. “Home buyers always look for means to reduce their financial burden when purchasing a house. They can save up to 30 percent of the cost of a home by buying it in a project at the pre-launch stage, so this is the most attractive route for them to take,” says Anil Pharande, a renowned developer.

Pre-launch is the period where the developer is raising the initial capital required for the project through brokers and investors. Sushil Raheja, another leading developer says, “It is something only seasoned investors must indulge in as long as they are in a position to bear loses if any. One must do a thorough background check of the developer, his past projects and consider the potential risk factors before taking the plunge.” If a project has all required approvals like commencement certificate (CC), free and clear ownership of the land, etc. it makes for a very good decision to invest in pre-launch offers. These projects benefit the buyers who are usually investors and end-users seeking to take advantage of the pricing and can wait for a couple of years to have the house possession.

 Source: Mumbai Mirror, Saturday 6 January 2018

Island city of Mumbai set to see more construction

Despite fears that the island city of Mumbai remains ill-equipped to cope with the unprecedented real estate boom that the region has witnessed in the past decade, the Maharashtra government has opened the door for further construction in the city. Chief Minister Devendra Fadnavis has lifted curbs on floor space index (FSI) for construction in the island city, permitting more building rights for redevelopment of properties. Following the CM’s nod, the urban development department has proposed modifications to Mumbai’s development control regulations to implement the move, and has invited suggestions and objections from the public.

The move to alter the regulations comes when a new set of development control regulations for Mumbai are already on the anvil. The current proposal is to allow builders additional building rights on payment of a premium. According to the proposal, builders can avail an additional FSI of 0.5 on the gross plot area on paying such premiums. FSI is a development tool that defines the extent of construction permissible on a plot.

 Source: The Indian Express, Wednesday 10 January 2018

‘Register documents for flats on collector’s land after NOC’

The registrar’s offices across the city have stopped registering sale and lease documents for houses and commercial tenements on collector’s land. Sedhuraman Iyer, a broker from Chembur, said the process had been stopped since Tuesday. “The registrar’s office has received a circular from the collector’s office informing it that unless the property registration card does not mention it is a B1 property (land given by collector) and is not accompanied by a no-objection certificate from the collector, it will not be registered,” he said.

Residential buildings on collector’s land are spread across the city. There are around 3,000 housing societies on collector’s land in the city and around 22,000 across the state. On January 5, the collector’s office informed various housing societies on collector’s land about various government resolutions that require an NOC from the collector for renting, mortgaging and sale of flats. On January 6, the city and suburban collector’s office wrote to the registrar’s office to ensure societies complied with conditions stipulated in the GRs, and if this was not done, to stop registering documents.

Source: The Times of India, Thursday 11 January 2018

Wadala to be revamped into biz district, plan gets MMRDA nod

Wadala is set to get a makeover. The area, where the truck terminus is located, will be revamped with the regional planning agency, MMRDA, approving a plan to transform it into a business district with a provision for residential properties. MMRDA will carry out development on 64 hectares of land of the total 109 hectares that it owns. A senior official said, “We will develop it as a smart business district with Wi-Fi facility, parking guidance system and an advanced CCTV system network.”

Chief minister Devendra Fadnavis said that the landscape of the area is set to change into a business district after proposed master plan to convert Wadala into a business district was given approval. “We have proposed mixed use of the land for both residential and commercial use,” said Fadnavis. “We have also proposed setting up of a transport hub along the lines of ISBT in Wadala.” ISBT refers to an inter-state bus terminus. He also said that developing Wadala will help generate revenue for MMRDA quite like the development of Bandra-Kurla Complex.

Source: The Times of India, Saturday 13 January 2018

 10 facts about a Will you must know

Untimely deaths in a large number of households are often overshadowed by family members squabbling over inheritance. Thus, it is advised to make a valid will in one’s lifetime so as to reduce any scope of family feud over property of the deceased. Magicbricks compiled a list of 10 things that you must know before you decide to write a will:

1) Who can make a will : Any person of sound mind, who is not a minor, can make a will.

2) Who can be a legatee: A legatee is the principal beneficiary or inheritor. A minor, a corporation and other juristic person can be a legatee. If the minor has been named as legatee by a testator, then a guardian should be appointed by the testator to manage the bequeathed property. One can make some provision for a faithful servant, a nurse or a friend in need of money.

3) Ensure it is error-free: A valid will should clearly spell out the name of the testator, without any error in initials, spellings or any grammatical mistake, thus, leaving no scope for any interpretation.

4) Right to appoint a legatee: The testator has an absolute right to appoint any person as a legatee or beneficiary of a will.

5) Takes effect after death: A will becomes enforceable only after the death of the testator. It gives absolutely no rights to the legatee (the person who inherits) until the death of the testator.

6) Codicil: If a testator intends to make a few changes to the will, without changing the entire will, he can do so by making a codicil to the will.

7) Declaration of ‘last will’: There is no restriction on how many times a will can be made by a testator. However, only the last will made before his death is enforceable.

8) Full disclosure: To ensure that your will is not challenged in a court because of discrepancies, it is advisable to declare all moveable and immovable properties in the legal instrument.

9) Attestation: The testator must sign the will in the presence of at least two independent witnesses, who have to certify that the testator signed the will in their presence.

10) Registration: Although it is not mandatory for a testator to register his will, it is advisable to do so.

 Source: Times Property, Saturday 13 January 2018

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