Tag: Property Buyers in India

Realty regulatory bill to be introduced in Monsoon session

NEW DELHI: The real estate regulatory bill that seeks to bring transparency and accountability in the realty sector will be introduced in the monsoon session of Parliament, a top government official said today.

Last month, the Cabinet had approved the Real Estate (Regulation and Development) Bill, that seeks to provide a uniform regulatory environment to the sector.

“The Bill will be introduced in the Monsoon session of Parliament,” Housing and Urban Poverty Alleviation Secretary Arun Kumar Misra said at an annual convention of National Association of Realtors (NAR) India.

The Bill will be sent to Parliamentary Standing Committee for consideration and suggestions, Misra said.

The month-long Monsoon session of Parliament is expected to start in late July.

Misra also disagreed with developers’ contention that prices would rise by 30 per cent once this Bill is passed in the Parliament.

“All that the regulatory Bill says that when you start selling the flats, all the licenses and permissions should be in place,” the secretary said.

Stating that the Bill deals with property brokers and agents as well, Misra assured the brokers’ body NAR that they would be included in the list of associations to be consulted by the Standing Committee. He asked the brokers to bring more professionalism in their business.

NAREDCO, an industry body of real estate developers, President Naveen Raheja emphasised on the need of self- regulation.

NAR-India is an industry body for property brokers and it has 1,700 members. They are affiliated to the national association of realtors (NAR), a global association based in Chicago, USA.

The Bill provides for setting up a regulator for the real estate sector and has provisions like a jail term of up to three years for developers who make offences like putting up misleading advertisements about projects repeatedly.

It also intends to make it mandatory for developers to launch projects only after acquiring all statutory clearances from relevant authorities. The Bill makes it mandatory for builders to clarify the carpet area of the flat.

Source: The Economic Times

Noida land prices may zoom

NOIDA: Buying a house or land in Noida, Greater Noida and along the Yamuna Expressway has become costlier. At a board meeting on Monday, three development authorities for these areas announced a substantial rise in allotment prices across all categories of land.

The revision comes into effect later this week, after the authorities publish a formal notification. The Greater Noida and the Yamuna Expressway authorities have also increased the compensation rate to be offered to farmers for acquisitions, besides providing a host of benefits to them.

In Noida, the allotment rates of group housing, residential and institutional properties have been hiked by 15%, commercial and industrial land rates have gone up by 30% and 11.25%. In Greater Noida, the allotment rate for land across all categories, except industrial, has been uniformly revised by 8.53%. The Yamuna Expressway area has also seen a hike in allotment rates of all categories of land by about 15%. The allotment rate for industrial properties remains the same as last year.

The authorities last hiked the rates between 7.5 and 40% in July 2012. “The increase in prices is a carried out each year. It should have happened in March, but got delayed,” said Rama Raman, chairman & CEO of Noida, Greater Noida and chairman of Yamuna Expressway authorities. “The hike in allotment rates is vital considering the rise in land costs, etc,” he said.

The hike is especially important for the Greater Noida Authority that is reeling under a major cash crunch. “The hike in rates was essential considering our current funds shortage. The more than two year-old land row has imposed an extra burden on the Authority in the form of enhanced compensation and rehabilitation packages for the farmers. Besides, many development projects have remained stalled for months,” Raman said.

The allotment rate rise means that residential properties in Noida have become dearer by at least Rs 8,115 per sqm in A Category sectors such as 14,14A, 15A, 17 and 44 and by Rs 2,950 per sqm in E Category sectors like 102,115 and 158. Group housing flats in Noida have are costlier by almost Rs 11,065 per sqm in A category areas and by Rs 4,180 per sqm in E category zones. In the institutional category for IT/ITES properties, Noida buyers will have to shell out Rs 33,940 per sqm now. For plots in Phase I and III industrial areas of Noida, the allotment rates are Rs 20,990 and Rs 7,740per sqm.

Raman said residential plots in Greater Noida will be dearer by almost Rs 1,592 per sqm while for commercial an extra Rs 3,155 will be charged. “Allotment rates in Yamuna Expressway Industrial Development Authority have also been increased between 14 to 18%,” Raman said. Developers put up a brave face as future booking would cost more. “The hike is steep. This means Noida, Greater Noida and Yamuna e-way will no longer be affordable,” said Getamber Anand, President Elect, National, CREDAI. “With floor-area ratio so expensive, it’ll be difficult to sell property. This will be detrimental to real estate business,” Anand said.

Source: The Times of India