The curious case of the NRI

With the Indian rupee having weakened against the USD, the entry price for the NRI property buyer is attractive. Due to a weaker rupee, NRIs can enter the market at a 10 percent discount compared to their domestic resident counterparts, thereby making it an attractive proposition for them. “NRIs have always had an affinity to the Indian real estate market. With rupee weakened against the dollar, investment in India has become cheaper, thereby paving the way for NRIs to get good deals,” says Suresh Castellino, executive national director – capital market and investment services, Colliers International India.

It is estimated that about 7-8 percent of the inventory is being bought and held by NRIs each year. Hence, given the current trend of enquiries and purchases in the last 2-3 months, it is being estimated that this consumption will only rise to about 10-12 percent – in short, a 3-5 percent rise in NRI consumption, which will only boost the market. Experts say that with the prices bottoming out, the market is only poised for a golden period. “Real estate is a long-term investment. With the rupee expected to decline further, NRIs should take advantage of the situation and park their money as the returns will only get better with time,” says Arvind Nandan, executive director-research, Knight Frank India.

Amit Goenka, MD, and CEO, Nisus Finance Services Co. Private Ltd, says the growth trajectory in the real estate market is being determined by The off-take of inventory: There has been a growth in the off-take by almost eight percent on Q-o-Q basis and over 12 percent since last year; Increase in prices: It is expected that the ready reckoner/ circle rates for real estate, which have been largely flat will rise next year. Also, projects, which have sold well, will look to increase their price points, thus demonstrating an upward momentum; Consolidation in the market: Consolidation of development in the hands of the large corporate and organized players means that prices and values will start to firm up further and increase over a period of time; Reduced launches: With most developers focussing on current projects, the demand for them will enhance buying decisions.

Source: Times Property, Saturday 3 November 2018

Tenant checks: a Mandatory visit to cops to go?

Soon, tenants may be exempted from visiting police stations for the mandatory verification. This could be possible as the registration department is set to transfer its data to the police department. Details submitted to the registration department, such as proof of name, past residence address, etc, will be shared with the police department through a special software. However, those who submit documents manually at the registration department for leave and license agreement will still have to visit police stations for verification. A source in the Inspector General of Registration (IGR) department said the data transfer process is in the last stage and the National Informatics Centre is helping with the same. “We had proposed the plan a year ago and now, it is in the final stages,” said an official.

A police official said that once the data is shared with them, citizens need not visit police stations. “When the registration department mooted the idea, we had put forth our requirements, which include citizen verification identity cards as well as residence proof, both current and past, and nationality. These details are anyway submitted in the registration details. There is no point duplicating the information. If it is provided to us, we will have it easy,” said Sanjeev Kumar Singhal, additional director general, state crime records bureau. “This facility is for those tenants who do e-registration. Those who submit documents manually to the registration department for leave and license agreement will still have to come to us,”. Meanwhile, the state registration department and police are keen on making it compulsory for tenants to e-register. Registration officials said the move is aimed at weed out middlemen. There are more than 500 authorized service providers in the state who, for a fixed fee, can register the documents and execute the leave and license agreements at home.

Source: The Times of India, Sunday 11 November 2018

TMC proposes 100-sq-km twin city near Thane

Thane Municipal Corporation (TMC) has drawn up plans to develop a self-sufficient twin city spread over 100 square kms along its fringes as an alternative to accommodate a growing population. Municipal officials said the idea, the brainchild of municipal commissioner Sanjeev Jaiswal, is to develop a new city on the lines of Navi Mumbai that can take the load of a growing population expected to settle in Thane and suburbs in the coming years. Six villages bordering Thane and Bhiwandi municipal corporation limits, including Kharbao, Paygaon, Paaye, Shilotar, Malodi, and Nagari, among others, have been proposed to undergo the transformation.

According to the initial concept, the corporation plans to tie up with MMRDA and form a special purpose vehicle that will be involved in the planning and execution of the megapolis for its residential, commercial and industrial activities. Currently, the areas are covered in MMRDA’s regional development plan but TMC wants these to be designed separately and brought under its fold. “Thane is saturated. A parallel city that can be designed from the scratch will have all the required amenities for a self-reliant township,” said an official from TMC’s town planning department. A proposal to the effect will be tabled before Thane municipal general body on Saturday for approval.

Source: The Times of India, Thursday 15 November 2018

Mumbai Grahak Panchayat’s survey aims at maximum projects under MahaRERA

The survey also intends to track the unregistered developers and share the information with the regulatory authority for further action. Nearly 17,000 real estate projects are registered with MahaRERA. The consumer body also wants to reach out to peer groups across the state to ensure registration of maximum housing projects.

MGP is conducting an online survey of home buyers across the state to collect information on the ongoing projects still not registered with MahaRERA. The survey will collect information about the developers who have collected more than 10% of the flat cost but have not signed agreements with home buyers. Once the survey is complete, the MGP plans to take up the issue with MahaRERA with evidence. “We have initiated the survey to ensure that the laws under RERA not only remain in books but are implemented.

Source: ET Realty, 3rd October, 018

Maharashtra RERA directs builder to obtain Occupancy Certificate within 3 months or pay fine

The Occupancy Certificate is proof that the building was constructed without breaking any rules and building codes. In its absence, residents have to pay double the charges for basic amenities such as water and face hurdles if the structure goes for redevelopment.

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has asked a builder to obtain the occupancy certificate (OC) for his building within three months, or pay an interest amount to a resident of the building who filed the complaint — a significant order for a city where more than 10,000 buildings do not have the certificates. MahaRERA, the state’s real estate regulator, was hearing a complaint filed by flat owner Amol Sadashiv Jadhav, against Balkrishna Constructions for not getting an OC for the building named ‘Rohini Niwas’ at Vikhroli. Jadhav said the builder had given him possession of the at on November 23, 2012, but without the OC. Six years later, the builder is yet to obtain the certificate. Jadhav pointed out how the poor water connection, non-existent fire-fighting systems, and lifts were causing him mental trauma. The builder blamed the delay in getting the certificate on a policy change under the Development Control Regulations (DCR) but said he intended to obtain it within the next six months. He said he would give the residents a permanent water connection after that.

Source: Hindustan Times, 12th October,2018

View Spacio’s Newsletter Archive

View Spacio’s Newsletter Archive


Connect with one of our experts. We look forward to helping you with your real estate needs.

Request a Call Back