High value properties rise as big families look to sell jointly-owned homes

Supply of high-value properties in the national capital and other metro cities is being driven by families wanting to sell jointly-owned bungalows in some of the most sought-after residential areas, said top realtors. Most of the properties are either owned by elderly people or by several members of the younger generation. Covid-19 has brought a fair bit of uncertainty into people’s lives. We see a keenness among families, especially the elderly, to formalise the distribution of assets to the next of kin, in their lifetime.

High value properties rise as big families look to sell jointly-owned homes

Most of such real estate, particularly the high-value properties priced around 25 crore and above, which were not on sale prior to Covid, have come onto the market now,” said Goyal. “In several cases, the original owner is not alive,and the next generation prefers to sell the jointly-inherited property sooner than later and divide the sale proceeds.

The Covid-19 pandemic has raised several queries about properties held in joint ownership. Never before, except perhaps in times of war, has the prospect of sudden, unexpected mortality of individual HNI joint owners without proper delegation of vested ownership rights become an issue which needs to be dealt with immediately.

Properties held in joint ownership can be very valuable family heirlooms or jointly acquired trophy assets in some of the most aspirational addresses in the country.

The real estate markets of Mumbai and Pune have seen the positive impact of slashed stamp duty charges in Maharashtra.

There has been astonishing demand in South Delhi’s premium colonies, with multiple buyers bidding for a single house. In most of the sales, the seller wants to move from joint ownership to single ownership, and that is also one of the reasons for the increase in demand. Prices in colonies like Anand Lok, Neeti Bagh or Defence Colony are now at par with Vasant Vihar due to the gap in demand and supply.

Homebuyers gets priority over banks

Putting the interest of homebuyers above that of banks when a real estate company defaults in repaying bank loans and handing over possession, the Supreme Court held that in case of conflict between the Real Estate (Regulation and Development) Act and recovery proceedings under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, the former will prevail.

Interest of homebuyers gets priority over banks [1]

Putting the interest of homebuyers above that of banks when a real estate company defaults in repaying bank loans and handing over possession, the Supreme Court held that in case of conflict between the Real Estate (Regulation and Development) Act and recovery proceedings under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, the former will prevail.

The bank alleged that Rera did not have any jurisdiction over the bank as lenders do not fall under the definition of ‘promoters’ for the purpose of Rera Act and the recovery proceedings of the bank cannot be halted by the authority. The interests of creditor banks and homebuyers often clash when a real estate company fails to complete the project on time, and also fails in repaying the loan and both start legal proceedings against the default company.

The HC held that complaints against banks can be filed before Rera if lenders took possession of a project as a secured creditor, following a default by the promoter in repaying loans.
The moment the bank takes recourse to any of the measures under sub-section (4) of section 13, it triggers statutory assignment of right of the borrower in the secured creditor. Till this stage arises the bank or financial institutions in whose favour secured interest may have been created may not be…amenable to the jurisdiction of Rera. However the moment the bank or the financial institution takes recourse to any of the measures available in the section 13(4) of the SARFAESI Act, Rera would have jurisdiction to entertain the complaint filed by an aggrieved person,” the HC had said.

Upholding the verdict of the HC, the SC said it was in “complete agreement” anddismissed the appeal of the bank. The bench, however, clarified the HC ruling would only be applicable to cases where the proceedings in Rera are initiated by homebuyers to protect their interest. The HC had passed the verdict while deciding a petition filed by the Union Bank of India against the order passed by Rajasthan Rera wherein while cancelling the bank auction, Rera directed the bank to hand over the possession of the semi-constructed residential project to Rera.

Soil testing for Joka Metro starts in Maidan

The ground work ahead of soil testing for the much-awaited Joka-Esplanade Metro has started in the Maidan area. This is a milestone for the Metro corridor that has been saddled with several missed deadlines even as it was Chief Minister Mamata Banerjee’s pet project.

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Chief Minister Mamata Banerjee had flagged off the project in July 2011 and planned it when she was the railway minister in 2009-10. Finally, Rail Vikas Nigam Limited (RVNL), the implementing agency of the 15km Joka-Esplanade Metro or Kolkata’s Line 3, has started the process of soil testing, after getting a go-ahead from the Army, custodian of the land in and around the Maidan area.

The Metro corridor is elevated from Joka to Mominpore. But a 5.6km stretch from Mominpore till Esplanade will be underground. Five stations — Mominpore, Kidderpore, Victoria Memorial, Park Street and Esplanade — will come up along this stretch. A soil testing survey by geotechnical engineers is mandatory before deploying Tunnel Boring Machines (TBMs) to build the underground section. The crucial test is supposed to check the soil condition and other parameters and depending on the results, the further course of work will be planned. The soil test will also study the erosion aspect and other characteristics before the TBMs can be pressed in to dig and burrow the twin tunnels as part of the Joka-Esplanade Metro link.

Usually, a series of boreholes, each of at least 15m diameter, is drilled after certain gaps. Normally, a boring rig with an auger (drilling device) drills a borehole and a tube is driven in to collect samples, which are tested for several parameters like density, strength and resistance.

But in the case of this Metro work, the locality is Maidan, so soil samples may not be collected from the boreholes to map the strata along the alignment. Instead, a superior technology will be used to detect remotely the topography and related specifications without affecting the Maidan grounds.

A senior RVNL official said, “We are trying to use a hi-tech method so that the testing can be conducted in various locations of the proposed route without inflicting any harm on the Maidan, which is an eco-sensitive zone.”

Areas on the Maidan have been barricaded for preliminary work ahead of the main soil testing exercise. RVNL is taking an extra care to get the job done following all green rules and guidelines relating to the Maidan. Over the past few months, the agency has been conducting meetings with the Army, so issues relating to the Metro project could be ironed out and the construction could be underway.
The Metro project approved in 2010 can so far be executed till Mominpore. Beyond Mominpore, the land belongs to Army,” said a railway official. Currently, the project is chasing a mid-2022 deadline to commission the 8.5km Joka-Taratala section.

Apartment registrations attain 79% YoY growth for 11-month period ending November

The residential property registrations in greater Kolkata in the 11-month period of 2021 stood at 40,972 units, a 79% increase in residential properties being registered on a year on year basis, as the West Bengal government has decided to levy stamp duty at the reduced rate until the end of the year.  The 2% stamp duty rebate has worked wonders for Kolkata residential real estate sector in the second half of the year and provided momentum to the residential sales with more than half (51%) of these units registered between July 2021 and November 2021,said Knight Frank India, the leading real estate consultancy in the country.

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“Kolkata’s real estate market continues to benefit from the stamp duty cut window extension. Though the pace of residential property registrations slowed in November 2021, the sharp y-o-y rise since July 2021, is encouraging for both developers and buyers going forward.  Due to record-low home loan rates, discounts and stamp duty reductions, registration of mid and luxury residential property transactions in Kolkata has continued to expand at a rapid pace. The original stamp duty reduction policy, intended to boost demand for residential real estate, was supposed to last until October 30. However, despite the encouraging cumulative numbers, the month of November 2021 registered a YoY degrowth of 62% when compared with November 2020. This is the first time in the past five months that property registrations have declined YoY.

“We are hopeful that the next three months will see more deals being sealed in Kolkata’s residential segment as prices remain stable and the interest rates continue to be low. This is an opportune time for buyers to execute transactions before there is any upward revision in prices by developers as stamp duty cut window has been extended till January 31, 2022.

In terms of unit sizes, apartments up to 500 sq ft, witnessed 81% y-o-y degrowth in November 2021, which is the highest across all size brackets. Unit sizes of 501-1,000 sq ft and 1,001 sq ft and above registered 41% and 25% YoY degrowth respectively.

Whilst there has been a decline in this size bracket too, it is interesting to note that bigger apartments remained the flavour of the month even when overall volumes are low. This is also indicative of the ongoing trend of end-users leaning towards bigger apartments as witnessed since the start of the pandemic as work and study requirements take priority in home ownership preferences.

Going forward, the extension of stamp duty cut to 31st January 2022 will help channelize incremental demand in the residential real estate sector. With developers citing high input costs and intent to review selling prices, end-users are likely to take homebuying decisions while the rebate lasts.

 

Merlin Group comes up with sports township in Kolkata, ties up with international icons

The greenfield sports themed township ‘Merlin RISE- The Sports  Republic‘ will house the state of the art Football academy of Ronaldinho – R10 FOOTBALL ACADEMY; the swimming academy of Michael Phelps– ‘Michael Phelps Swimming’; India’s state of the art “MMA Matrix Training Centre’ by Tiger Shroff  and  the cricket academy of Yuvraj Singh – The Yuvraj Singh Centre of Excellence (YSCE).
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Spread over a sprawling area in Rajarhat, the project is poised to develop 10,000 flats with an approximate population density of 35000 at Rajarhat Chowmatha on the six lane express highway connecting New town. The proposed township is 20.9 km  from the central  business district of Kolkata and 7.5 km from Bengal Silicon Valley. The R10 football academy and The Yuvraj Singh Centre of Excellence (YSCE) will be operational within the next 5 months. The Michael Phelps Swimming and MMA Matrix Training Centre will be active in the next one year. The Sports Township of Merlin is equipped with  a football all weather ground , where 2 matches of 5 a side and also 7 A side and 9 a side can be played at one time along with world class training to be imparted by  R10 Academy of Ronaldinho. The sports city will have Indoor nets/pitches to practice during bad weather and 2 outdoor pitches on the field with all the updated equipment and technologies to be imparted by YSCE. In Swimming  Merlin Sports township  will house a swimming pool at the rooftop of the Sports Club where  training will be provided  Under the training and programme of the G.O.A.T swimmer of the world “ Michael Fred Phelps”. The sports city will have a state of the art gymnasium with the updated equipment, proper training and diet guidance along with provision of MMA MATRIX (Mixed Martial Arts) and other facilities where one can accomplish to be the best athlete. The academies will hire international supervisors and coaches who  will  nurture the talent pool , train them and take  them to  the next level to possibly represent the state or district or nation. We will try our best to provide assistance to needy yet talented youngsters,” he adds. The first phase of the mammoth township project will witness the development of  2529  flats. Out of these, 968 apartments will be sold through lottery now. The second phase of the project will witness the launch of a multispecialty hospital, a  school  of international repute. A retail block with hypermarkets from organized retail giants  and offices with co-working space will also be there as part of the township. The township will also include facilities for other sports activities like Basketball, Badminton, squash, Table Tennis.

For booking rise.liyaans.com