Important Facts to Look For in The Real Estate Bill

The real estate industry has cordially praised the amendment of Real estate (Regulations and Developments) Bill in 2015 approved by Union Cabinet. This bill has been introduced to unite the regulations and environment in the industry. The main motive of the bill is to provide the best services to the buyers and investors by giving the possession on time and fastest project deliveries, proper and effective redressal of customer grievances, safe and secured investments and maintained growth in the realty sector

IMPORTANT FACTS TO LOOK FOR IN.jpg
Some featuring facts which are favorable for the homebuyers in the unauthorized market are discussed below-

Regulations of real estate projects and agents- A disordered realty sector has many small association developers and agents who are willing to expand themselves day and night. There was no organizer or any association who can control and regulate this disarranged industry. There was a lack of laws and rules which can stop the immoral activities of developers to save the buyers interest and hard-earned money. The bill is now introduced to bring the stakeholders under the regulations where they can suffer from 3 years imprisonment for developers and 1 year for agents for not obeying the laws.

Escrow amount limit increase- A developer uses a temporary account to stop the outflow of funds from one project to another. This account is called the escrow amount. After the introduction of the bill, the developers are bound to keep 70% of funds in escrow amount. Though some of the developers welcomed this measure and some have criticized it.

Disclosures of information are compulsory– A common phenomenon in the real estate is homebuyers are not being provided with full information about the projects. The amendment now made it compulsory for the developers that they should convey every information about the projects including layout plans, floor plans, and registration of the projects, details of the architect agent and contractor which will make property dealing transparent.

Weighing consumer opinion– After the amendment of the bill, the promoters and developers are being restricted for making changes in the project specifications without taking the consent of the buyers and investors.

Simplify the grievance redressal– The bill ensures that the grievances which are raised by the buyers will be solved and settlement of the disputes will be done by forming Appellate Tribunal by appointing adjudicating officers. The customers can appeal in the district courts in 644 consumer courts. This process will decrease the expenditure and consume less time for redressal.

Buyers can plan to invest in Flats In Rajarhat as the projects are capable to deliver the possession on time and all the apartments are made with good interiors.

Why it is the ideal time to invest in Mid-Budget Flats in Kolkata right now

Want to buy a home in your early thirties?
Are you looking for compact apartments in a metro city?

The industry experts suggest that investing in mid-budget flats in Kolkata can lead you to the throne. Research indicates that 80% of the young homebuyers consider property portals (esp video contents) while choosing an apartment. But there are other prime facts too which can return the maximum on your investment. One essential fact would be keeping yourself updated with the latest governmental announcements related to the residential realty segment. Keeping a close track on the institutional declarations is a pivotal fact to be considered while buying your home. If you miss out any, you could end up paying higher than the actual price.

Reportedly, the booking of mid-budget flats in Kolkata has increased over 20%-25% during the last fiscal. Want to know why?

Read on: In its recent announcement central government has allotted Credit Linked Subsidy System (CLSS) to the Middle-Income Group housing category coupled with an increased Floor Area Ratio (FAR).  It means middle-income group affordable housing (both MIG-I & MIG-II categories) are now eligible to claim the CLSS benefit provided by MIG-I category should have a carpet area of 160 sq meter or 1,722 sq ft and for MIG- II category it is 200 sq meter or 2,153 sq ft under the Pradhan Mantri Awas Yojana (PMAY-U) Urban. The CLSS for MIG scheme started gaining impetus in the last couple of quarters and the growth is indeed noticeable.

Since the affordable housing sector has turned out to be the newest sales outpouring source for the real estate sector in India, the Ministry of Housing & Urban Affairs (MHUPA) is absolutely leaving no stones unturned in order to give it a further boost.

It’s an open secret that the word ‘affordability’ varies from state-to-state based on several parameters such as- availability of land, socio-economic structure, cost of living, potential growth factors and lots more.
Buying flats in Kolkata meet all these said parameters successfully. And the best part is most of the top-level housing development of these days fit into the said CLSS beneficiary with ease.

Previously, there was an increment of carpet area for both MIG categories. It took the sales of affordable homes higher across the metros by 15%-17%.

Now under the revised rules, homebuyers with annual household income from Rs 6 lakh to Rs 12 lakh would be eligible for MIG I category, while MIG II for income needs to be above Rs 12 lakh up to Rs 18 lakh. Interest Subsidy for MIG I and II will be 4% and 3%, correspondingly for maximum loan tenure of 20 years.

The adequate home loan amount for interest subsidy will be Rs 9 lakh and 12 lakh for MIG I and MIG II category, in that order. Loan quantum above this limit will be at non-subsidized rates. In its recent release the ministry has declared that as on 11.06.2018, an amount of Rs.736.79 crore has been disbursed to 35,204 beneficiaries belonging to the MIG categories.

The range of the CLSS e was expanded to MIG category with the approval of the cabinet In February 2017. The scheme got its approval for implementation in the year 2017 has been stretched up to March 2019.

The recent home loan revision decision of Reserve Bank of India (RBI) foreshadowed the revised CLSS announcement by the housing ministry. As per the revised home loan structure of RBI, the housing loan limits for PSL eligibility from existing Rs 28 lakh to Rs 35 lakh in metropolitan centres (with population of 10 lakh and beyond), and from existing Rs 20 lakh to Rs 25 lakh in other centres, provided the by and large cost of the housing unit in the metropolitan centre and at other centres do not surpass Rs 45 lakh and Rs 30 lakh, respectively.

“Government’s decision to increase the carpet area further will expedite the construction part of affordable housing sector along with a close quality check. Since most of the mid-budget flats in Kolkata fall under the CLSS benefit scheme, the overall sales are expected to get a sizable augment in the coming years or so,”- says Mr. Mahesh Somani, Chairman- National RERA Committee, National Association of Realtors, India.

The increased construction activity in residential segment is about to reflect on the demand and supply chain of the core segments like- cement, steel, equipment and the other related segments. There will be a wider open horizon for the skilled and unskilled workers with the growing housing construction process across the urban areas of the country.

This is like a digging gold mine opportunity for the MIG flat buyers. People who have been in search of mid-budget flats in Kolkata, this should be the perfect time to plunge in.

The Future of Hospitality Real Estate in India

Tourism in India is driven by the rich historical and traditional heritage and topographical assortments spread across the country. The future of the hospitality industry inherently related to that of the tourism industry with both foreign and domestic travelers playing an important role in its rise. The industry is witnessing significant growth in every year with its changing business models and distinctive perquisites. The biggest reason behind this boom is India’s overall development as an emerging, favorable business destination in South Asia. The potential advancement in the hospitality sector has been attracting major global hospitality players towards the country.

Hospitality industry in India is one of the brisk expanding industries at present. It’s expected that the tourism industry single-handedly will be contributing about Rs. 9-10 lac crore by the year of 2020. The six rotating seasons of our country returns this industry huge take home. With the changing mindset of Indian travellers, there are numerous luxury resorts and boutique hotels have been mushrooming per diem. Both the domestic and international travellers visit has severely increased over the last few years. Tourism is also a large employment originator apart from being pivotal source of foreign exchange for India.

India is currently having more than one lac hotels. While there are established Indian names like- ITC, Oberoi, Leela and Taj, there are major international brands such as – Hyatt, Marriott, Starwood SPG, Carson Group, Accor Hotels, IHG, Zinc etc. have tapped the market of Indian hospitality business. Besides, there are multiple branded aggregators like Oyo Rooms, Zo Rooms, Vista Rooms, Trivago and others are delivering state-of-art service to expand the prominence of the industry.
In a bid to widening the landscape for the international players, the government has allowed 100% FDI in the hospitality and tourism sector. The industry will see more foreign hospitality brands investing in India in the coming days. Hospitality market in India is going to own many partnerships and tie-up business between different domestic brands as well.

With the changing market scenario, customers have become more price-conscious and they sought for better value for their investment throughout the experience. Hotel Industry is now approaching budget accommodations under their existing brand value thereby making the service available on a larger scale. Other than their core business, hotel industry will also be focusing on other avenues such as- event management, transport services, and other auxiliary services. Thus, they are zooming in tier II and tier III cities for their business expansion. Reportedly major global brands like- IHG, Starwood, Zinc Invasion and Hotel Behemoth expressed interest in launching branches aiming the mid and luxury market segment. Along with the supply of the construction materials, sale and lease of commercial lands will be integral parts of this business expansion. This business evolution will concrete the alliance between the domestic real estate development houses and the international hospitality players.

“Hospitality industry currently envisages about budget-friendly, standardized accommodation which could be a positive benefactor to the real estate industry. The industry is currently exploring development alternatives in tier II and tier III cities and that would spur the growth of urbanization as well as infrastructural development. As more big names are aiming towards India the better constructional and architectural progress will be assures and it will annex country’s present economical standing”- said Mr. Mahesh Somani, Head- East Zone, National Association of Realtors India (NAR).

-LNN (Liyans News Network) – Buy commercial property in Kolkata. Explore available office spaces/retail/warehouse/shops in and around the city.

Housing Ministry Associates With UrbanClap in Search of Employment For Trained Urban Poor

In a bid to advance the employment ratio of the country Ministry of Housing and Urban Affairs tied-up with UrbanClap, an online service aggregator, to offer employment opportunities for urban poor skilled under Deen Dayal Antyodaya Yojana-National Urban Livelihoods Mission (DAY-NULM).
With every day the level of population is increasing as more and more people flocking to the cities in search of better livelihood. NULM extended the beneficiaries of urban poor to include the homeless street vendors who are always overlooked in government programmes. This program also aims to provide shelter equipped with necessary services to the urban homeless in step by step manner. This programme also supports women empowerment.

National Urban Livelihoods Mission (DAY-NULM) was introduced by the Ministry of Housing and Urban Poverty Alleviation (MHUPA) in September 24, 2013 replacing the previous Swarna Jayanti Shahari RozgarYojana (SJSRY). Reducing poverty level of the urban poor households by enabling them to access productive self-employment and better livelihood was the core objective behind this initiative. According to the sources, this tie-up will assure a minimum monthly income of Rs. 15000 for electricians, plumbers and carpenters. The coverage might get broadened to take in families of disadvantaged groups like SCs, STs, women, minorities, disabled etc. subject to a utmost of 25 percent of the above urban poor population.
The Minister of Housing and Urban Affairs, Hardeep Singh Puri said, “The MoU will lead to enhancing the employment of those being skilled in high demand services under DAY-NULM.” According to the latest official statement of HUA, more than 35% of those skilled people under DAY-NULM have found employment after their training period.
Under the MoU signed for 5 years with UrbanClap, the ministry of HUA will broadcast the details of those trainings under DAY-NULM with UrbanClap. UrbanClap will rack up demand for domestic services and the urban poor trained under DAY-NULM in 16 cities such as- Delhi, Gurgaon, Noida, Navi Mumbai, Pune, Kolkata, Chennai, Hyderabad, Bengaluru, Ahmedabad among others. Besides, the Housing Minister asked UrbanClap to provide services to all the 106 cities that have population of five lacs and above and the state capitals.

Under this mission City Livelihood Centres (CLCs) were founded in several cities to provide a platform through which urban poor can showcase their services and access required information on self-employment, trainings and other employment updates. This particular mission will focus on providing assistance for development/upgrading the skills of the urban poor in that they could improve their ability for self-employment as well as salaried employment. NULM counts on 6 pillars for institutional development that would deliver comprehensive success to the programme.
The six pillars are-
1. Formation of Self-help groups (SHGs).
2. Universal financial inclusion.
3. City Livelihood centres.
4. Capacity building and training.
5. Self-employment programme and
6. Support to urban street vendors (USV).

LNN (Liyans News Network) – Now we are showcasing affordable flats in Kolkata across prime emerging residential areas of Kolkata. Buy LIG/MIG apartments starting at 18 lac in Kolkata and suburbs. Avail PMAY subsidy benefit.

Kolkata Realty Report Jul-Sept 2017

Do you want to buy flats in Kolkata? Here is the Kolkata property market insight from July to September to have an overview of the current situation.

Recovery of real estate sector

The mission is yet again unaccomplished as West Bengal government has still not notified respective RERA norms. It has just tabled the draft before the cabinet; neither the government has appointed a related authority yet which resulted in languid market sentiment.

Advanced tax collection

Unitary Area Assessment (UAA) is another much-spoken topic by KMC after the RERA implementation. It’s basically an online tax calculation and tax submission which can be performed by the property owners of the city. Reportedly it’s still stuck in IT glitch. This move will improve the tax collection index of the city.

Removal of unsafe constructions to create aggressive demand

The KMC is yet to form a special committee to find solution and final treatment to the unsafe buildings of the city. This committee will be set up in ward to ward basis and will be headed by the local chairperson. So, in the coming days redevelopment works are likely to happen around the city.

Allotted yet unused plots are under the magnifier

Allotted plots, with the nonappearance of any construction work would be liable for abandonment by the Housing Infrastructure Department Corporation (HIDCO) through expediting land parcel for further realty construction.

Infrastructural growth

Development of infrastructure gained a huge push with an investment of Rs. 12,180 crore allocated for roads, power and water supply projects. As of now 12 road projects in Kolkata, including 6 flyovers and an elevated corridor have been thought to receive a chunk of this investment.

Price graph among the important micro-markets

Locality    Avg. ‘Ask’ Rate (per sq ft) QoQ change YoY change
Baguihati 2500-3200 -6% -6%
Keshtopur 3200-4000 1% 1%
New Town  4600-5300 -5% 0%
Rajarhat 3550-4000 3% 1%
Dum Dum 2900-3600 -2% 1%
Behala 3200-4000 -1% -1%
Jadavpur 4000-5300 -3%       -4%
Garia 3200-3800 -6% -2%
Tollygunge 4000-4800 2% 2%
Sodepur 2700-3100 1% 6%


Annexure

CAPITAL VALUES- APARTMENTS RENTAL VALUES- APARTMENTS
Locality Jul-Sep 2017 % Change Locality Jul-Sep 2017 % Change
Action Area I 4900 0 Action Area I 15 0
Agarpara 2600 4 Baguihati 11 5
Alipore 12700 -1 Ballygunge 29 2
Baguihati 3200 -6 Bansdroni 14 4
Ballygunge 11900 1 Behala 13 4
Bansdroni 3750 3 Chinar Park 12 9
Barasat 2300 5 Dum Dum 13 9
Behala 3650 -1 Garia 13 -7
Behala Chowrasta 3550 0 Gariahat 27 4
Belgharia 3150 -2 Jadavpur 16 0
Bhawanipore 9100 -4 Jodhpur Park 20 5
Chinar Park 4600 4 Kaikhali 12 4
Dum Dum 3275 -2 Kalikapur 14 8
Garia 3725 -6 Kasba 17 3
Jessore Road 4175 1 Kestopur 11 0
Jodhpur Park 7550 -4 Lake Gardens 18 3
Joka 3250 5 Madhyamgram 9 -5
Kestopur 3325 1 Naktala 14 4
Narendrapur 3600 1 Narendrapur 11 0
Netaji Nagar 3750 -6 New Alipore 21 0
New Alipore 6870 1 New Town 14 0
New Garia 3500 -3 Patuli 13 -4
New Town 4850 -5 Prince Anwar Shah Rd. 28 14
Park Circus 5950 -2 Rajarhat 13 0
Picnic Garden 4650 3 Salt Lake 17 0
Prince Anwar Shah Rd. 10085 -4 Santoshpur 13 8
Prince Anwar Shah Road Connector 5000 -1 Southern Avenue 27 4
Rajarhat 4500 3 Tollygunge 18 3
Salt Lake 5775 -1 VIP Road 13 -4
Santoshpur 4200 1
Sodepur 3125 1
Southern Avenue 10075 2
Tollygunge 4800 2
Uttarpara 2800 -5
VIP Road 4400 -4

What our experts say

Residential market demand in Kolkata is favourable towards compact, affordable housing apartments with modern facilities and off course relatively congested areas. BT Road, Chinar Park, Dunlop and Salt Lake are the new emerging hotspots of residential investment. Implementation GST will bring clarity in real estate tax index. Above all, will RERA implementation market is expected to get better in coming days. Market will witness a major upswing in coming one year. Property in north Kolkata has been the most popular choice of investment throughout the year. On the back of metro connectivity Joka, Barasat and Agarpara are one of those potential growth areas to be mentioned. Affordable housing contributed steadily in the sales volume.

News of rental market

Price Answar Shah Road area witnessed 14% advanced demand on YoY basis. Airport peripheral areas have annual 9% high ‘ask’ rate in areas like Chinar Park and Dum Dum. Santoshpur, Kalikapur and other few areas of EM Bypass connectivity gained 8% growth in rental values.

Demand: Supply

Despite restricted new launches availability of the houses counterbalanced the popularity parameter by 10%. This inconsistency prevailed in all demand categories. While affordable housing segment received a steady market demand, the digits of demand and supply in luxury residential category yet again failed to impress the sale.

LNN (Liyans News Network)