Month: June 2017

Soaring Demands For Compact Houses In Chennai- Affordable Housing Strikes Again

Riding on the central government’s incentives and great home loan EMI discount affordable housing sector is sitting on the top of the demand list. Low-budget project development in city area and outskirts has been keeping developers active in one after the other project deliverance which leads to a shortcoming in new projects, especially the high-end ones. The number of budget housing units launched in and something like Chennai developed 102 housing estates in the first four months of 2016 to 124 in the same period this year.
Cushman & Wakefield market study: According to the market study report of property consultant Cushman & Wakefield, barring the last quarter Chennai and its outer edge areas has found that the number of affordable housing units launched had over and over again increased in 2016. The study also revealed that 124 mid-level units (2 BHK) and 748 premium units (3-4 BHK) were launched in the duration of the first four months of 2017, but no new projects (3000-4000 sq ft area) have been announced in the HIG segment.

What CREDAI says: CREDAI (Tamil Nadu Chapter) points towards government subsidies which is the reason behind increasing market demand of affordable housing apartments. As per the Confederation of Real Estate Developers Associations of India (CREDAI) Tamil Nadu Chapter, 20% members who used to see the luxury housing sector currently after the affordable housing sector as 65% of market demand has been coming from budget flats only. Affordable houses that meet certain parameters are eligible for benefits under the Pradhan Mantri Awas Yojana (PMAY). Budget apartments with an area of 700 square feet in the suburbs are priced between `20 lakh and `50 lakh depending on the location.

“Presently all the metro cities and other big business areas in realty are dealing with unsold inventories. Developers are busy in clearing their back-logs through tempting offers and discounts. Affordable housing is the only sector that is continuously performing under the liquidity crunch in present market. Low-budget flats in Kolkata are single-handedly contributing 30-35% sale despite this flat market,-said West Bengal RERA and realty expert Mr. Mahesh Somani.

–LNN (Liyans News Network)

Home Loan Above Rs. 75 Lac Gets Cheaper

India’s central banking institution the Reserve Bank of India has reduced the weight-age on home loans above 75 lacs from 75 per cent to 50 per cent lately. RBI has taken this initiative to support banks for disbursing more volume of home loans for home buying in the big business cities.
In its monetary policy RBI cites that residential property sale holds a central position through its forward and backward connection with country’s economy. It has been fixed on as a counter cyclical measure to cut down risk weigh on verified categories. Standard asset provisioning on such loans will also be declined accordingly.

RBI adhere the REPO rate at 6.25% and the Reverse Repo rate at 6% in its monetary policy review. The Marginal Standing Facility (MSF) – an emergency funding facility will stay in at 6.5% as also the Cash Reserve Ratio (CRR) of 4%.
An additional move that will alleviate the liquidity in banking system by close to Rs 50,000 crore, RBI has lowered the Statutory Liquidity Ratio (SLR) – the decree for least possible holding of government securities. Previously banks used to invest 20.5% of their deposits in gilts; which will now be replaced by 20% and it will be effective from June 24, 2017. This reduction decision has been made on the fact of allowing banks coadjute with the intercontinental norms on liquidity coverage that will be proclaimed January 2019 onwards.

Before this revelation it was apprehended that RBI will make delay in disclosing the rates. Industry experts expect that RBI will relax their standpoint from’ neutral’ to ‘accommodative’ to convey that easy money condition would conquer. Meanwhile petrol prices have been jumped up again across the country since the inflation numbers were made public and chances are it will ascend further. However, RBI continued to stick with the neutral stance on the ground the easing of price of commodities for short term period.

–LNN (Liyans News Network)– Contact us if you are looking for an outstanding property in north Kolkata. Check out the wide ranged luxurious development around Kolkata north. Browse our web portal to have the best comparative aspect of the on-hand and up-coming projects.

MAHA Government Appeals To The High Court For Granting Extra FSI In Navi Mumbai

On Monday June 5, the state government of Maharashtra urged the Bombay High Court to annul its law detaining the government from increasing floor space index (FSI) for economic clustering of Navi Mumbai. Previously, in July-August 2014 the HC had ordered the state government to procure an impact assessment report before approving an increased FSI of 4 for cluster development in cities, over and above the regular FSI of 1. The state government was inhibited from issuing any final notification or proceeding towards any conclusive decision. The judges asked the government’s advocate to circulate the impact assessment report to all parties, as well as the petitioner, and scheduled the hearing on Friday.

This judgment has been made after hearing a PIL by Thane resident Dattatray Daund that said in view of the drastic affect of FSI of 4, an impact assessment is much required. Government had proposed to give consent to cluster development in Mumbai, Thane, Kalyan, Nalasopara, Mira-Bhayander, Vasai-Virar, Ulhasnagar, Bhiwandi-Nizampur, Ambarnath, Kulgaon-Badlapur, Palghar, Jawahar and Dahanu. All these respective local civic bodies were made appellants in the PIL.
In the application of the state government there is an urge to the court of ‘vacating/recalling’ its previous judgment and allowing the notification of increasing in FSI for Navi Mumbai. Already the city Municipal Corporation and City and Industrial Development Corporation has performed a detailed impact assessment study based on multiple aspects like- demographic changes and its potential outcome on infrastructure and amenities among others which affirmed that the increment of FSI won’t have any poor effect on city’s overall growth.

From the application we also get that both planning authorities are analytically on the rise of infrastructure and amenities bearing in mind the needs of the society and taking all protective measures required for the scheme of given that additional FSI. As per the report, there are many residents of shaky buildings who can’t afford the reconstruction. Thus, implementation of cluster development in collaboration with the private sector is a need of the moment.

-LNN (Liyans News Network) – Visit us to buy high-end residential properties with high discounts and attractive offerings only under residential property sale in Kolkata. Avail our mega weekend sale. For property details browse www.liyans.com.

New Residential Project Launch Dropped By 16% (January-March)

Country’s top 8 property markets have seen a 16% on-year decline in new residential project launch. A Cushman & Wakefield report shows that there’s a slump of 25,800 units of new launches in the in the first quarter of 2017. Market expects to witness more development after complete RERA implementation. During this transition period people are probably unsure about the unadulterated   implementation of the central regime, as most of the states are yet to submit respective RERA rules and the conjecture is the reason behind this inordinate delaying by the states to safeguard most of the ongoing projects.

RERA implementation won’t impact the current market price in the short to medium term. Residential launches have declined just about 8% during the period April 2016 to March 2017 compared to the same period in 2015-16. Report suggests the reduction is the consequence of abrupt demonetization move followed by RERA implementation announcement. Kolkata has always been attractive market for real estate investment for its metrical realty valuation. People are mostly seen investing in flats in Rajarhat for the availability of bulk projects as per their requisite. Still, new project launch gets overshadowed by on-hand inventories in the prime locations of the city.

The only residential sector which has been a constant source of revenue is the affordable housing sector. Thus, with the increasing market demand there has been a hike in affordable project development of 30% compared to 25% in the same period in FY 2015-2016. Whereas, the sale of ultra-luxury residential projects have been dropped by 11% from 13% during the same period. The fall of sale volume is better evident in high-ending luxury housing sector comparing to the other sectors due to demand-supply imbalance.

Luxury housing sale will be static for next couple of quarters as developers are busy in modifying their business structure, operation and marketing strategies complying with RERA norms. Eventually buyers won’t show much interest in realty investment as they want their rights to be protected with a legal bound.  Minor cutting back IT/ ITeS segment is likely to impact the end-user sentiment. A gradual sale increment is forecasted during second half of 2017.

“RERA is the biggest reform of real estate industry till date. It aims to bring back much-awaited accountability and transparency in realty practice. Market will be automatically readjusted after the enforcement of RERA and GST. Residential sector will regain positive buyer’s interest with the legitimate practice of realty under RERA ambit,”- said RERA (West Bengal Chapter) expert Mr. Mahesh Somani.

“Not online in Kolkata major markets like Delhi, Bengaluru, and Mumbai are also currently dealing with heaps of inventories, which has led the city’s to have a price correction/ price moderation of on-hand luxury projects in most of the sub markets across the MIG and HIG segment. Again developers are offering lucrative packages to clear inventory back-logs.”- Mr. Somani also added.

Developers are focusing to finish the under construction projects (advanced construction stage) to safeguard them from RERA purview. At present, developers are primarily engaged in establishing systems and processes to register the ongoing projects with respective RA.

–LNN (Liyans News Network)

 

Government Aims To Build 51 Lac Houses Under PMAY (Gramin) In FY 18

51 lac houses are likely to be constructed amid 2017-2017 to meet the target of one crore houses by 2019 under PMAY under the updated Pradhan Mantri Awaas Yojana Gramin (PMAY-G) and prospect to overturn the construction completion time limit to 6-12 months from 18 months to 3 years.
As per the sources over 32 lacs houses will be ready for the occupancy in FY 2017, whereas 18 lac projects have been successfully developed across the country in FY 2016.
PMAY-Garmin was introduced in November 2016 swapping places with India Indira Awaas Yojana.
This year center has sanctioned RS. 15,000 crore for the development under Pradhan Mantri Awaas Yojana Gramin (PMAY-G) and it doubled the provision per household from RS. 75000 to over 1, 20,000; by which the by and large area increased by 22 to 25 square meter.
It’s expected that there will be more volume of affordable flats in Kolkata around the suburbs and extended parts of the city. Government targets to finish the entire project within their scheduled timeline. For meeting up this target, they are now speeding up the progress of the development. Along with which they are tracking they money being allotted for this purpose is not being blocked for some irrelevant purposes. Under the new scheme by far 15,000 houses have been constructed.
Builders are bound to update the government timely with relevant snaps of the project completion at different stages including geo-referenced network for detailed verification of the projects in a much easier and quicker manner.

Following the Socio Economic and Caste Census data 2011, government has analyzed that a total number of 3.92 crore people of lower-income group fall under homeless category, despite ongoing government’s ambitious project. The survey data has found that 2.26 crore houses are eligible for this scheme. Thus, within coming 7 years government aims to bring in 3 crore affordable housing projects across the country for village-side EWS.
“Government’s effort for sheltering socio-economically weaker sections is utterly commendable. The growing absorption in semi-urban and suburban areas has lead to issues of land-shortage, illegal acquisition and congested conveyance. For basic facilities such as open areas, water, electricity was largely getting affected. We hope to see more eminent developers to be associated with this ambitious project of government,”-said Mr. Mahesh Somani West Bengal RERA expert.

–LNN (Liyans News Network)