Mumbai ranked 24th among 41 cities globally with 1.1% price rise of luxury homes for the year ended March 2017 Guangzhou in China was first n the global list of 41 cities with 36.2% price growth, according to `Q1 2017 Knight Frank Prime Global Cities Index’. The index tracks the movement of luxury residential property prices across 41 cities. Delhi (ranked 35) and Bengaluru (ranked 29) were the two other Indian cities that figured in the global list.
Maharashtra hikes stamp duty on gift of property
Gifting a property to spouse, brother, or sister has just got more expensive in Maharashtra. Gift of property will now attract a stamp duty of 3 percent of the market value of the property. Previously, a stamp duty of approximately 2 percent (Rs 10 for every Rs 500) was payable on such transactions.
Government sources, however, clarified that the higher rate won’t be applicable to gift of ancestral residential or agricultural properties to one’s spouse, children, or grandchildren. State’s finance managers have estimated mopping up of an additional Rs 100 crore in revenue following the increase in stamp duty.
Source: The Indian Express, Wednesday 17 May 2017
Govt stays hike in ready reckoner rates for plots
Nearly two months after it hiked the ready reckoner rates for property transactions in Mumbai Metropolitan Region by nearly 6 percent, the Maharashtra government has stayed the decision for a month. The move follows representations by the real estate players who said any increase in ready reckoner rates will hit the sector hard as it is already in the grip of an economic downturn.
While the builders’ lobby has welcomed the decision, consumer associations are unhappy as they say the stay pertains to only open plots. Ready reckoner rates are the prices of residential units, land or commercial property for a given area that are published and regulated by the state. At the beginning of every financial year, the government brings out a detailed area-wise list. This rate or actual property transaction value, whichever is more, is used to calculate stamp duty on property.
PEs bet the most on Commercial Realty
Commercial real estate has emerged as the most preferred segment for private equity investments with Rs.5,630 crore deployed in these assets in the first quarter of the year – this is the highest private equity real estate inflow in office assets since 2009. The investments into office properties constituted 59% of the total investments made across the country during this period, showed a Cushman & Wakefield study.
The asset class also noted a 90% year-on-year growth in inflow with an average deal size of Rs.940 crore, indicating rise in investors’ confidence. Residential assets claimed 37% of total investments at Rs.3,620 crore during the first quarter, recording an increase of 59% over the past year with an average deal size of Rs.180 crore. Institutional investors have been keen to deploy money in leased commercial assets given the lower vacancy levels and the imminent potential of assets to be listed under Real Estate Investment Trusts (REITs).
Pune holds huge promise
The Peshwa City has come a long way indeed. Pune has made a phenomenal progress over the last couple of decades emerging as a city that possesses immense potential in terms of trade, commerce and business. The city also offers an environment congenial to entrepreneurship and startups. In fact, in the last couple of years, Pune is making a mark as a thriving startup hub.
Offering a perfect combination of talent pool, job opportunities, power of expenditure and a vast consumer base, the city throws greener pastures open for budding and established businessmen. Expanding its base from traditional growth engines like education, automobiles, manufacturing, real estate and IT, Pune has developed new economic drivers like healthcare, retail, FMCG, e-commerce, hospitality, wellness and even pharmaceutical.
Mumbai Developers go `Compact’ to lure home buyers
The impact of demonetisation and the Real Estate Regulatory Act has sharpened the focus on home buyers and end-users, even in the country’s most expensive property market of Mumbai in recent months. Several developers are trying to right-price and right-size their offerings to suit the home buyers’ requirements. Given the latent demand for apartments priced under Rs.1 crore, most developers are looking to offer projects at this price point to improve cash flows targeting home buyers keen to live within Mumbai city limits with compact apartments.
Recent projects launched in suburbs, including Goregaon, Malad, Kandivali, Kanjurmarg, Chembur and Mulund point towards this emerging trend. Apart from small developers, a few large developers, with proven track records, have also entered this segment recently. Given the benefits of compact homes for home buyers & developers, this product category has seen great traction already. Home buyers are also responding well to these projects as it offers an address within the city limits and their budgets.
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