The state government has finally rolled out its new transfer of development rights (TDR) policy for Mumbai, where additional construction rights will be given to builders depending on the width of aroad along a project site. State urban development secretary Nitin Kareer said the policy has been officially notified.
The biggest beneficiaries will be developers with projects along roads that are 30 metres wide, like LBS Marg, SV Road, Jogeshwari-Vikhroli Link Road, Santacruz-Chembur Link Road and E Moses Road.For example, a builder redeveloping a 1,000 square metre plot can currently avail of 2,000 sq m to build with an FSI of 2. Under the new rule, he will get 2,500 sq m to build with an FSI of 2.5. The new policy says no extra construction benefits in the form of TDR will be offered for projects on roads less than 9m wide.
An emerging luxury corridor
The Andheri-Goregaon Corridor in Mumbai is emerging rapidly as a preferred destination among the buyers of luxury housing due to the wide range of options it offers in prices and configurations. Areas include Andheri (west), Goregaon (west), Andheri (east) and Goregaon (east). The corridor has had strong infrastructure linkages with many key infrastructure landmarks present here including the Chhatrapati Shivaji International Airport and the Santacruz Electronics Export Processing Zone (SEEPZ).The New Link Road and the Swami Vivekanand Road, also running from north to south, have been instrumental in the development of residential areas on the west of the Western line.
Builder to pay 10.9% interest in case of delays in delivery
The union government recently notified rules to implement the Real Estate Regulation Act (RERA), which will enable buyers who have invested in real estate projects – including existing ones to secure interest at 10.9% per annum for delayed possession. In case a buyer is seeking a refund, they will now be entitled to a refund on the entire payment at the same rate, and the builder will have to repay the amount within 45 days of a claim being made. Now that the rules have been notified, every builder will have to register with the state regulator. The final rules specify that developers of ongoing projects will also have to deposit 70% of the funds collected, but which have remained unused, into a separate bank account within three months of applying for registration.
Office space demand sees sustained pickup across top cities
The demand for commercial real estate across the country is getting stronger and is witnessing a sustained momentum. The office space absorption across top 9 property markets has seen a growth with total 28.3 million sq. ft. picked up during the first nine months of 2016.
The key office markets across India, especially in the south, continue to go from strength to strength in terms of office absorption, and with rents increasing significantly compared to prior years in certain micro markets. This is good news for owners and developers, but a challenge for office occupiers in many cases, as they face the prospect of higher rental rates and fewer options to choose from at least in terms of ready supply.
Real Returns – Pune Showcase
A force to reckon with, Pune is one of the most dependable investment destinations in the country that wouldn’t let investors down. Easy accessibility to Mumbai is one of the advantages even as the city offers state-of-the-art residential projects at reasonable prices. A variety of locations and projects is what sets Pune apart. From affordable to luxury, Pune has homes suiting all pockets.Again, Pune offers wonderful investment prospects.
PE firms invested over $2 B in Mumbai Realty in year to June
India’s commercial capital, Mumbai, attracted more than $2 billion (Rs.13,400 crore) of private equity investments cumulatively across all segments of real estate in the last one year until June-end, up 44% from a year ago.Foreign funds have increased their investments 19% from a year ago and accounted for about 45% of these investments. Residential assets were the most preferred and accounted for 62% of total investments in the city.
Black money strike: Is it a good time to buy a home?
The clamp down on black money may have a negative impact on the real estate sector, but it may be just what the doctor ordered for home buyers. For fence sitters waiting for housing prices to correct, this could well be the time to buy a house. Reduction of cash component in a real estate transaction will encourage more genuine buyers in the secondary market rather than investors who are interested in simply parking their black money. This will eventually lead to deflation in property price with some experts expecting up to 30% drop in real estate prices.
Rs 12k cr project to develop 23 Panvel villages cleared
The much awaited NAINA (Navi Mumbai Airport Influence Notified Area) project has finally been cleared by the state urban development department (UDD), signalling commencement of its first phase of development in 23 villages of Panveltaluka, covering 37 sq km.Developers and property agents in Navi Mumbai and Mumbai welcomed the move as it will open up a huge quantum of land for development. Cidco, the planning agency, will spend nearly Rs 12,600 crore over 10 years on infrastructural development within NAINA.
Connect with one of our experts. We look forward to helping you with your real estate needs.