ICCPL PROPERTY NEWS

Will real estate projects get an e-clearance?

Narendra Modi once made a statement, “Economy is bleak without Infrastructure. Hence, the prime focus of my government is Infrastructure.” With Modi taking the charge, these words are actually transforming into action.

As per a report by the Prime Minister’s Project Monitoring Group (PMG), currently industrial projects worth over Rs 14 trillion are stalled due to requisite clearances. And this number is constantly increasing. Thus, as we are already battling with the low GDP, in order to revive the economy it becomes imperative to tackle this issue with utmost seriousness. Interestingly, the recent move for e-clearance by Modi’s cabinet is a giant step in this direction.

Go Online!

For any project, environment clearance has been a major roadblock in the last few years. But not anymore! Taking a cue from the latest fad of the industry of going online, from 1 July environment clearances for the industrial and infrastructure projects will be made online. All forest related clearances will also come under the purview of this online mechanism. For the smooth flow of work, central government is working with the state governments to ensure that the clearance is granted within 60 days.

What if the process is delayed? Well, there will be a provision for penalty as well. However, the details on the same are yet to be out in the public domain. This will bring in much-needed transparency in the system as it will monitor stage-wise approval mechanism. Further, once the verification of the project is done, within four days a password will be generated for the applicant to check the progress.

So, how will it impact the real estate market? Well, as Indian real estate is highly sentiment-driven, only the announcement of infra-projects can lead to the whopping price rise in that particular area. Be it the curious case ofNavi Mumbai Airport or the Bangalore Airport or any other major project, the land values in these area went overboard in anticipation of the upcoming projects. And due to certain issues, when the project gets delayed the realty market of the area becomes stagnant. No housing project will come up as there is no supporting infrastructure and the investors who spent a lion’s share to buy a property in that particular area won’t sell the land in lesser rate. All this results in the stagnant market where no transactions will happen until the construction on the project commences.

Future proposals

Another major step is proposed by the Ministry of Commerce and Industry in order to facilitate smooth flow of the major infrastructure projects. The ministry recently suggested that major government-led infrastructure projects should not come under the purview of the new Land Acquisition Act.

Though good in intent, but there is no clarity as to how the farmers will get the compensation.

E-clearance for real estate projects?

With online mechanism for the infrastructure projects, even real estate sector is hoping for good days ahead of them. The recent decision of bringing Departments of Housing and Urban Poverty Alleviation and Urban Development under the ambit of the same ministry received a positive response from the real estate fraternity. Thus, raising their hopes, developers are now expecting a faster approval process from the new government. As per the recent report by Knight Frank, a real estate consultancy firm, about 285 major projects are stalled due to lack of clearances from various ministries.

Developers Opinion

“Taking the system online will restraint the corruption in the sector and bring the required transparency which will finally lead to swift completion of work. It will gradually save much expenditure and energy that was being wasted in this entire process. Similar online structure is required for real estate sector too, where developers can upload their project information and display the work progress along with money demand raised to public. This will also help in getting the clearances and approvals without excess wastage of time,” says Prashant Tiwari, CMD, Prateek Group.

“There are two aspects of looking at this move. One, any process in context to the clearances and approvals is a very tedious task in India, as a lot of time is wasted and projects get delayed. Therefore, this mechanism will reduce the approval time significantly thereby speeding up the work. Second, in this eagerness to progress we should not cause irreversible damage to the forests. We should noticeably classify natural forests from the planted forests. Since forest lands are inexpensive, many want forest land for the projects that can be taken up in the non-forest lands,” says Sushant Muttreja, CMD, Cosmic Group.

The last word

If single-window clearance becomes a reality, real estate sector will definitely go one notch up. Now let’s just wait till July 10 for FM Minister Arun Jaitley to open his budget box for the current fiscal. Till then we can take solace in the government’s e-clearance mechanism for the Infrastructure projects.

 

SOURCE: commonfloor.com (http://www.commonfloor.com/guide/will-real-estate-projects-get-an-e-clearance-43811.html)

ICCPL PROPERTY NEWS

5 things that realty sector expects from the Budget

From time immemorial, investing in real estate has been promising and most profitable. The tradition still continues and will bound to remain an attractive investment option in the coming years as well. However, with soaring property values, denizens are forced to take the home loan route, which is characterised by the high interest rate. And due to unending delays, despite investing a lion’s share of one’s investment, this cherished dream takes fairly long journey to become a reality.

With just a few weeks left for the Union Budget 2014-15, real estate sector is eagerly waiting for the budget that is expected to pave the road for the development of the sector and infuse positive sentiments in the market.

Thus, in the backdrop of the current market scenario, here are five important points that are expected to find place in the first budget of the Modi government, which will be unveiled on 10th July.

–Industry Status. Despite being just next to agriculture in terms of employment generation and contribution to theGDP, year after year, the sector’s hope of getting a status at par with industry is quashed by the government. As real estate sector promotes several other industries such as cement, steel and many more, it is high time now that government should realise the importance of the sector. If granted the industry status, availability of funds will be much more easier, that will boost the market significantly.

-Single-window clearance. A lot has already been said and written about single-window clearance. Thus, speedy approvals is the need of the hour to clear the piling inventory in every city. For a housing project in a metro city, there are a minimum 34 regulatory processes to be followed by a developer for obtaining construction permits, which takes an average of 227 days or even more. This not only delays a project, but also increases the cost of property by 10-20 per cent.

-SOPs for affordable housing. With Modi’s dream of ‘Housing for All by 2022’, the sector is awaiting for special provisions in order to promote affordable housing. In the anticipation of the upcoming budget, developers have already started doing their bit. For instance, recently Mahindra Lifespaces, the realty arm of the Mahindra Group launched a new business vertical called ‘Happinest’ focused on affordable housing.

-Tax benefits for buyers and investors. The tax exemption limit needs to be raised from Rs 2 lakh to somewhere around Rs 3 lakh so as to increase the disposable income of the people. Further, to promote women ownership of property, they must be given a special concession in the same for upto Rs 4 lakhs or so. Also, there should be rationalisation of direct and indirect taxes in the real estate industry to enable competitive pricing for the end user.

-Reduced Interest rate on home loans. During Atal Bihari Vajpayee’s regime, from 11 per cent the interest rate was brought down to 7 per cent. Now it has crossed the 10 per cent mark. Thus, this should also be addressed with utmost seriousness. Further, as of now the principal loan amount falls under the purview of 80C, which has maximum limit of one lakh. Thus, there should be a separate provision for the principal loan amount.

Tell us your Budget Wishlist by taking our Survey

CommonFloor interviewed several stalwarts of the industry and captured their expectations from the upcoming budget. Here’s a snapshot.

Gaurav Gupta, General Secretary, Raj Nagar Extension Association & Director SG Estates

“With clear mandate and a stable government, we now expect a fresh wave in real estate industry with all prospective buyers in wait and watch mode coming forward and finalising their purchase decision.To make it an interesting proposition for buyers, investors and developers, the new government may look into low cost funding availability and better infrastructure. Streamlining the approval process will result in quicker land acquisition and faster approvals. Implementation of proposed Goods & Service Tax framework; tax benefits for buyers/real estate developers to induce activity in Real Estate industry which is suffering from liquidity crisis and inventory overhang will also bring a wave of enhancement. It is expected that the government will take immediate action on delays on approvals of Height and Environment as well.”

Anuj Puri, Chairman & Country Head, JLL India

“Industry status, Clarity on tax parameters for REIT, more SOPs for affordable housing, Increase in tax waiver for interest and principal payment for housing loan and liberalization of FDI norms.”

Dhiraj Jain, Director, Mahagun Group

“With the manifesto of a new government in place, that has promised housing for all, we look forward to work with them in achieving that goal. We foresee a government that will create new structural reforms and take firm and decisive policy decisions for real estate sector to propel growth.

Taking adequate and proportionate measures to increase affordable housing alternatives will not only create a GDP multiplier but also improve the living standards of Indian citizens. The buyers/investors sentiment remains weak given the high interest rates and rising residential prices. There should be rationalisation of direct and indirect taxes in the real estate industry to enable competitive pricing for the end user. Immediate implementation of the real estate regulatory bill, introduction of single window multiple statutory clearances, affordable land availability, quickerland acquisition and easy and low cost funding availability are some of the thoughts that we hope will be driven into reality.”

Pradeep Jain, Chairman – Parsvnath Developers Ltd

“This time the industry is eagerly awaiting the industry status which will ensure that policy dispensation available for infrastructure projects also extends to the realty sector. Single Window Clearance with pre-defined timelines should be introduced for speedy approvals and bringing transparency into the sector. Reduction in interest rates for home buyers in affordable segment through interest subvention should be given to lift the buyer sentiments. It is right time that the sector is given an impetus in the form of policy reforms to help improve the economic scenario of the country. For this, Government of India must liberalise its FDI policies and relax it to attract more foreign investors. It should cut down the minimum lock-in period to three years and also minimum investment from USD 10 million to USD 5 million.

As real estate is one of the vital contributors to economy’s GDP, Government of India should shift its focus towards this sector and do all the needful to make this sector grow with a CAGR of 20-25 per cent in next 5 years.”

Aman Agarwal, Director, KV Developers

“This time industry needs infrastructure status. Furthermore, Government should come up with simple and effective polices that will ease real estate development approval procedures. Single-window clearances are the need of the hour. The budget needs to increase infrastructure spending in urban areas with a view to unlocking the value of neglected and hidden land assets in suburban and peripheral districts. The Government should address these concerns in the budget, and this should be followed through by RBI in terms of easing the repo rates and relaxing other policy instruments such as the CRR, SLR, etc. to inject liquidity into the system. In my opinion, this is essential if the Indian economy’s key sectors such as manufacturing and real estate are to grow.”

Prashant Tiwari, CMD, Prateek Group

“The new government is just settling in. It has been made very clear by the government that in order to make the future look brighter, there will be some compromises and sacrifices. Therefore, expecting much from this budget is quite a hard task. Although, the government can do some work in the favour of common man so as to make it a win-win situation for both. For instance, the tax exemption limit needs to be raised.

Ajay Aggarwal, Managing Director, Microtek Infrastructures

“Coming at such a crucial juncture, we, as India’s one of the largest conglomerates, have high expectations from the first budget of Narendra Modi-led NDA government. Here it becomes imperative to mention previous NDA government’s vital contribution in Indian real estate market’s growth over the years. Presently, the sector needs similar kind of push, albeit in different form and for new reasons, to establish it in the leadership position for not only our GDP, but also on global stage.

Priority-wise, we would like the finance minister to address issues related interest rates for home loans (bringing down to 8%), funding (including REITs) and inflation (preferably taking down to 4-5%). For long term, the budget should have measures to make Rupee strong, infrastructure development on mission mode, single window clearance for real estate projects and industry status along with the real estate regulator. Combination of both these short term and long term steps will not only benefit the sector, but also it will translate into creations of millions of jobs and a substantial push to GDP of our country.”

 

SOURCE: commonfloor.com (http://www.commonfloor.com/guide/5-things-that-realty-sector-expects-from-the-budget-43819.html)

ICCPL PROPERTY NEWS

UP Apartment Act enacted: Consumers celebrate, Realtors wary

Following Maharashtra’s footsteps, the Noida and Greater Noidaauthorities finally adopted the UP Apartment Act of 2010. Until now, these two cities were governed by the UP Industrial Act of 1976. Thus, in addition to extending substantial rights and privileges to apartment owners, it will also ensure much-needed transparency in the system.

The UP Act 2010 aims to provide the ownership of an individual apartment in a building of an undivided interest in the common areas and facilities appurtenant to such apartment and to make such apartment and interest heritable and transferable and for matters connected therewith or incidental thereto. The act is applicable to all projects having four or more apartments. It extends to the whole of State of Uttar Pradesh, and has been welcomed by the real estate fraternity as well as consumers.

So, will the Uttar Pradesh Apartment Act 2010 really help the sector? Or are there any drawbacks? LetCommonFloor unfold the provisions of the Act, in hindsight of the Maharashtra Act No II of 2014, which recently received the Presidential assent.

Benefits to the end-users

-Due to the clandestine practices resorted to by developers, the end-users had to bear the brunt. In this, hiding several details regarding the apartment tops the ladder. But not anymore. Clause 4, sub-section (1) clearly states that a developer has to make a full and true disclosure in writing to the purchaser and the Competent Authority about the property. These include details concerning to rights and title of the land, all encumbrances, plans and specifications approved by the local authority, nature of fixtures and amenities, to name a few.

Further, sub-section (2) of the same clause highlights that a developer should also specify the date of completion in written, along with the penalty for the delay and also in the event of non-payment of installment by the purchaser.

Though good in intent as it empower the buyers to question the builders, the clause lacks certain clarity. Unlike Maharashtra Act where in the case of delay, buyers are entitled to receive the amount paid by him with the interest cap of 15 per cent , however UP Act does not throw any light on the matter.

-Constructing the building as opposed to the approved plan has become a common practice these days. Fortunately, this has found the place in Clause 3. As per the Clause, if the developer proceeds with the construction contrary to the approved plan, the Uttar Pradesh Power Corporation Limited, with due notice, will disconnect the supply of water and electricity. However, certain deviations are permissible.

-Variations in the material used in the sample flat and in the actual building has become quite prominent these days. In order to prevent it, Clause 8 highlights that construction and structural defects noticed upto two years will be rectified by the developer without any extra cost. Maharashtra Act, on the other hand, addresses the defects upto five years.

-To bring in more transparency, after the commencement of this Act, no developer can give the possession without registering the property. Clause 13 has made it mandatory to have an appropriate transfer deed and the property should also be registered under the provisions of the Registration Act 1908.

-Last but certainly not the least, as per Clause 25, illegal use of areas demarcated for for the common use and facilities such as park, pathways, etc, can lead to imprisonment for three years, which may further extend to six years or fine not less than Rs 3-5 lakh. This is a good move as it will promote healthy lifestyle with ample of open and recreational spaces in a complex.

Obligations of buyers

With power comes great responsibilities. The UP Apartment Act also outlines several obligations.

-As per Clause 22, sub-section (1), if an apartment owner violates the bye-laws mentioned in the Deed of Apartment, or make changes in the property that is detrimental to the safety of the apartment without the consent of all the apartment owners, or fails to pay the common expenses, then the Association of Apartment Owners may (after the notice of not less than 7 days) curtail the services enjoyed by such apartment owners.

-As per the Clause 25, sub-section (3), if an apartment owner violates the use of common areas and facilities in accordance with the purposes for which they are meant, or make any changes apart from the provisions of this Act, then the owner may be fined anywhere between Rs 10,000-50,000. Further, if the violation continues, Rs 1000 will be charged on a daily basis.

All said and done, the Act will surely bring in much-needed transparency in the sector as there will be anAssociation of Apartment Owners to attend the grievances and redressals. But certain amendments in the Act are definitely required. For instance, if a project is in different phases, then after completion of the first phase, developers are expected to take permission for the next phases. This does not sound feasible and might only end up delaying the possession.

Also, nowhere in the Act there is a mention of advance payment and deposits, which also is a major bone of contention between a buyer and a developer.

Further, as per Clause 28, clauses (25 and 26 ), which mainly talks about the offenses by developers and companies does not come under the purview of this act if the promoter is a local authority, statuary body constituted for the development of housing or is a company controlled by the government. As UP has several government bodies such as Noida Municipal Corporation, Greater Noida Industrial Development Authority and many more building several housing projects, there are very high chances of corruption here.

What developers say?

While home buyers have a reason to celebrate, developers on the other hand have a different opinion. Some are even seeking a review. Let’s have a look.

R K Arora, CMD, Supertech Ltd

“We are of the view that the projects should be allowed to be executed, completion certificate obtained and delivered phase-wise. Further,the UP Act should be applied prospectively only as it is difficult to comply with various provisions in respect of old and completed projects now.To this extent, we seek review of the Act after inviting objections and suggestions from the Real Estate Associations.”

Kushagr Ansal, director, Ansal Housing

”The inculcation of apartment act is a good news for the customers but it looks pretty impractical from a developers point of view. It is important that customers must know all the information about a project, builder, construction, etc. and it is the duty of every builder to provide necessary intel to the customers whenever demanded. However, if a project is to be built in different phases then after completion of one phase, taking permission for the consequent ones makes no sense.”

Deepak Kapoor, director, Gulshan Homz

“It is nice to see that authorities and government are taking steps to promote power and right of the customers in real estate sector. But the authorities need to understand that not all clauses will work properly. It is fine that compensation will be provided if delays occur in anytime and already most developers pay compensation money in such cases. But intimating the buyers every time in advance about any form of plan or construction work will be much more tedious and this in turn will affect the construction negatively.”

Arvind Singh, MD, KRasa Group

“There is still a lot of work that needs to be done in the apartment act. This act can work for small projects where there are less units and towers. The task of asking every customer about the next development is only feasible in smaller projects. You just cannot expect a developer to go on and ask several thousand customers if a hundred acres township or city is been planned. This will be a haywire situation for a builder and might even push them to commit mistakes and delays. However, the point for compensating and being transparent with the customers is gladly appreciated and accepted by the sector.”

 

SOURCE: commonfloor.com (http://www.commonfloor.com/guide/up-apartment-act-enacted-consumers-celebrate-realtors-wary-43612.html)

ICCPL PROPERTY NEWS

Repo Rates unchanged: Realty stalwarts react

With Finance Minister Arun Jaitley stressing on reviving growth momentum and curbing inflation, RBI in its second bi-monthly monetary policy has maintained its hawkish stance and for the second time in the row has kept the repo rate unchanged at 8 per cent. The decision was well-received by the real estate fraternity.

“The recent decision on keeping the rates unchanged was widely anticipated by developer community, as we were aware that the economy has gone past recession and is on consolidation mode. Any change in rates is not feasible as we have reached the zenith of high rates of interest prevailing in the market,” says Pankaj Bansal, director of M3M India.

Even though this stance has paid off in reigning in spiralling inflation, the borrowers who have been paying high interest rates will have to wait for the rates to fall.

Explaining the same, Abhay Kumar, CMD, Griha Pravesh Buildteck Pvt Ltd says, “With the economic indices improving and inflation curbing in the near future, the RBI may work on bringing down the interest rates. So while we see the short term pressure on the borrowers to continue, we are hopeful it will bolster the overall economic growth which in turn will percolate to the realty sector. And that is what we want – the sector to revive and demand to strengthen.”

When the repo rate is raised, banks are compelled to pay higher interest to the RBI, which in turn prompts them to raise the interest rates on loans they offer to customers. “The customers then are dissuaded in taking credit from banks, leading to a shortage of money in the economy and less liquidity. Therefore, keeping the repo rate unchanged will allow some breathing space to the banks and ultimately the customers. Also, this can help in curbing the rising inflation in the economy,” says Kamal Batra, Chairman, Buniyad Group.

Reiterating the same, Ashok Gupta, CMD of Ajnara India Ltd. says, “the repo rate being kept unchanged at 8 percent was pretty much anticipated by the market as the new government setting up will like to start well.”

But the worrying part for the industry is the outlook and the hints in the policy that in the wake of elevated inflation, the interest rates may be revised again. However, the reduction in Marginal Standing Facility rate will help the banks to reduce short-term interest rates and enhance their lending operations during the busy season, especially at a time when there is a significant reduction in the flow of funds to productive sectors of the economy, adds Gupta.

Sharing similar views, Pradeep Jain, Chairman, Parsvnath Developers Ltd says, “since the RBI has kept the policy rate unchanged, the policy is on the expected line from the Apex Bank. Now all eyes are on the first budget by Modi Government where we expect some favourable reforms for real estate sector like infrastructure statue to affordable housing, widening of FDI norms automatic route for ECBs, Interest Rate Subvention to home buyers and Priority Sector status to construction Loan for Affordable Housing Project, defining maximum stamp duty on affordable housing.”

Before taking its view on the rates, RBI seems to be in wait-and-watch mode till the budget is tabled. Thus, all eyes are now set on Arun Jaitley’s budget that will be tabled in the first week of July.

 

SOURCE: commonfloor.com (http://www.commonfloor.com/guide/repo-rates-unchanged-realty-stalwarts-react-43064.html)

ICCPL PROPERTY NEWS

Gurgaon realty readies for a complete Infrastructure revamp

Gurgaon has evolved as a hub of corporates and multinationals in the last decade. The real estate sector has witnessed a corresponding rise in residential values and demand although infrastructure still remains a primary concern for this millennium city.

The government as well as investors are betting big on the city with numerous plans in the offing to address this concern. With a multitude of plans as outlined in the Gurgaon-Manesar Master Plan 2031 which includes an ambitious rapid metro rail project, Gurgaon is likely to witness a face lift in the near future. With additional enhancements of internal road and rail network, Gurgaon’s connectivity woes might be a thing of the past. 

Residential real estate in Gurgaon is already on fast track development. Improvements in infrastructure, fast connectivity and upcoming realty projects of international standards are further going to give Gurgaon realty a shot in the arm.

A quick look at the key infrastructure developments in Gurgaon:

• Some of the designated special economic zones (SEZs) have been converted into 7 new residential and commercial sectors
• Permitted population density has been increased to 100-120 people per acre from 80-100 people per acre earlier 
• 16,000 hectares of land has been earmarked for residential purpose 
• 1,600 hectares allotted for commercial purpose, 4,600 hectares for industrial areas and 4,400 hectares for transport and communication facilities
• Public utilities have been allocated 600 hectares, public and semipublic facilities 2,000 hectares and 2900 hectares for open spaces 
• A 60 metre-wide road between industrial Sectors M3A and M4 will be further extended through the Aravali hills 
• High-speed metro service, airport express link between Sector 21 (Dwarka) and IFFCO Chowk (Gurgaon) has also been proposed
• Increase in the size of Sector 37-D
• Proposed 1600 Acres campus of IMT to have a sports, leisure and leather hub 
• Allotting the whole land piece in between Gadoli Khurd and old sector-37D to builder Ramprastha
• Land on the northern side of Pataudi Road being converted into residential and commercial zones as well

Gurgaon Infrastructure Plans: What all is in store

 

According to the Master Plan 2031, which merges Gurgaon and Manesar, the city will have more residential property units, social infrastructure like schools, hospitals, playgrounds, and physical infrastructure. The new master plan aims to create accommodation for an additional 21 lakh people. In the first phase of development of the Rapid Metro, Cyber City will be connected to the Sikanderpur metro station improving the internal accessibility. The second phase will connect the Sikanderpur Metro Station to Sector 55 and Sector 56 as well as the Golf Course Road.

The remaining two phases of rapid metro will have a major impact on property demand as Phase II will pass through DLF City Phase I, IV and V, independent houses and gated communities in Sectors 27, 28, 51, 52, 53, 54, 55, 56 and 57. The metro line is expected to cover localities such as Golf Course Road and Central park.

Several other plans such as rain water harvesting plans, broadening of NH8, increasing power supply in several more regions, renovating the internal roads of the city and major work on waste management are being approved but the work on it is yet to commence. “The major constraint is that of time. The others are manpower and allocation of funds,” adds Kamal Batra.

On the roadways front, the DLF redevelopment plan intends to make Golf Course Road one of the best roads in India, with plans to link Cyber City to this road via a 16-lane corridor. This will ease the vehicular traffic on this stretch. The detailed project report (DPR) for the extension will be ready in another six months and once the DPR is ready, the Haryana government will approach the Centre for project approval, reports say.

Gurgaon has always developed as an industrial and commercial hub of National Capital Region (NCR) as most of the multinationals and industrialists have their setup present in the region. Kushagr Ansal, Director of Ansal Housing points out that the recent nod by the National Green Tribunal (NGT) to widen NH8 will further boost the existing real estate demand in the region. Although, the roadway maintenance in the region seems to be a bit of a problem as there are a lot of residents and commuters travelling within and around Gurgaon every day, he quips.

A Detailed Project Report (DPR) of the airport express link between Sector 21 (Dwarka) and IFFCO Chowk (Gurgaon) through high-speed metro rail is being examined, says Vikas Gupta, MD of Earth Infrastructure. The Haryana government also proposed that Gurgaon should be taken under Jawaharlal Nehru National Urban Renewal Mission (JNNURM) or necessary funds should be provided for running buses in the city.

Haryana government has also prepared development plans for 25 out of the 35 towns covered under the Haryana-NCR sub region. The state government has taken necessary steps to develop metro rail and road connectivity between Delhi and adjacent towns including Gurgaon.

 

SOURCE: 99acres.com (http://www.99acres.com/articles/property-trendz/811-gurgaon-realty-readies-for-a-complete-infrastructure-revamp.html)

ICCPL PROPERTY NEWS

Children Homes – the new rage among builders and buyers

For 7-year old Sunaina, her dream home means living under the same roof as Cindrella and Alice in Wonderland. She wants to see her favorite Disney characters sharing space with her. Little does she know that today her dream can turn into reality with the latest children themed homes offered by real estate developers! 

This new rage among builders and buyers is gaining momentum thanks to the children playing a decisive role in property buying. Builders such as Supertech Ltd and the Prestige Group have tied up with Disney for developing Disney-themed homes in India. The concept is largely based around offering Disney home products across total home solutions including furniture, bedding, rugs, tableware, kitchenware, fans, paints and bath accessories. 

Other builders in the fraternity such as Cosmic Group and Ajnara Ltd have attempted to offer concept homes in the ultra-luxury segment as well but none of these have captured the imagination of the buyer as child based themes.

 

The most typical feature of these projects is the art work in and around the project. Artists from across the globe are called and their expertise is put to use in these projects. Further, the sales personnel is given specific training to sensitise families to the value additions in these projects. 

Here’s a look at some of the unique features in these projects:

 

Supertech is one such builder that has tied up with Disney India for Disney-inspired interiors and exteriors at its project, Fable Castle, part of Golf Country at Yamuna Expressway. The costing implications of these projects are at a higher scale, which is 25 per cent more as compared to regular projects, says Mohit Arora, Director of Supertech Ltd. 

The success that builders have had with child-centric homes has prompted them to launch other theme based projects. 

Global exposure, higher income, awareness and growing trends are influencing buyers and developers are rising to the occasion to capitalize on the opportunity being posed by these innovative concepts, adds Mohit Arora. There has been a continuous growth in this particular segment as developers continue to meet the growing demands by catering to the potential customers. 

Cosmic Group, on the other hand, is offering European ultra-luxury with romantic based amenities in their ‘La Gracia City Of Romance’ project in Rishikesh. While, Ajnara’s Ambrosia project in Sector 118, Noida is offering a complete Spanish experience of living as its theme.

Profitable growth is a major goal of the developers and they also aim to develop their brand, target new customers and widen their product portfolio, says Sushant Muttreja, CMD, Cosmic Group.

New concepts that are gaining ground are:

• Architectural design of various cultures – Egyptian, Arabic, European, Roman or Spanish
• Sports theme, especially with a golf course
• Ultra-luxurious and romantic based themes

Buyers today, don’t just want a house, but an overall unique living experience. It for the developers and builders to fill this expectation gap.

 

SOURCE: 99acres.com (http://www.99acres.com/articles/property-trendz/821-children-homes-the-new-rage-among-builders-and-buyers.html)

ICCPL PROPERTY NEWS

Noida homebuyers left in the lurch again!

Delhi/NCR: The recent judgment of the National Green Tribunal (NGT) prohibiting the Noida authority from giving completion certificates to projects within 10km radius of the Okhla Bird Sanctuary will affect around 20,000 buyers whose apartments have been completed and ready for delivery.

Rohit Raj Modi, the president of real estate developers’ body, Credai NCR, said that around 30,000 more apartments are nearing completion in the next one year, but that after the NGT judgment builders would go slow in completing those projects. The delay in securing the completion certificate from Noida authority–due to the NGT judgment–is causing hardship to buyers, Modi said.

Most of these projects were launched in Sectors 74, 75, 76, 122, and 137, among others. Twenty five projects, belonging to almost all large builders like Amrapali, Jaypee, Logix, Gulshan Homz, Antriksh, ATS, Paramount, Supertech, etc, and which fall within the 10km radius around the bird sanctuary, are affected due to the judgment. Interestingly, all the 25 projects have already got the environment clearance. Getamber Anand of ATS said that builders had no idea of any such problem in the region. Even worse for the builders is that now, as the projects have been completed but delivery has not been given, they will have to manage and maintain each and every apartment without charging any money from buyers.

Homebuyers, too, are up a gum tree as most of these projects were launched and sold around four years ago and they have been paying EMIs since then. Now, with this judgment, homebuyers cannot occupy their houses, even as they pay rents as tenants and shell out the EMIs at the same time.

Credai, during the hearing of the case, requested the NGT to allow the construction on projects, which are beyond 100 metres of the bird sanctuary, as proposed by the Uttar Pradesh government, subject to the builders getting environmental clearance. It also pleaded that if builders have not obtained environmental clearance, the tribunal could take an undertaking from them that such construction would not create any equity in their favour and that they are doing the construction at their own cost, risk and peril, and would not claim any right.

Credai said it was necessary to give this clarification in order to mitigate the developers’ hardship and to ensure that there is no multiplicity of proceedings, as allottees are threatening to take legal action. But, the NGT refused to give any relief.

Homebuyers are the worst sufferers. Since most of them are staying in rented houses even as they pay EMIs for their houses under construction, they will have to bear this double monetary burden even after their booked flats are ready for possession.

Getamber Anand, the CMD of ATS Group, says: “It is very disappointing to note that a huge stock of ready-to-possess flats in group-housing projects are lying vacant in the Noida region due to the ruling of the National Green Tribunal, which prohibits Noida authority from giving clearance certificates to developers for final possession of flats in their completed projects. This current situation has resulted in a huge loss for genuine homebuyers who were looking forward to early possessions, as they are already burdened with the home rents and regular EMIs.“

“It must be noted that the adjoining Delhi areas of Jamia Nagar, Lajpat Nagar, Nehru Place, Kalkaji, Badarpur, etc, also lie within 10km radius of the Okhla Bird Sanctuary. We are hopeful that the NGT will direct Noida authority to issue occupancy certificates to the projects which have the requisite MOEF clearances and also take a relook into the petition calling for a 10km-radius eco sensitive zone around the bird sanctuary,“ Anand said.

Rohit Raj Modi of Credai says: “The recent decision of the NGT has affected a lot of buyers, who were all ready to move into their new flats bought from hard-earned money. We have been raising the issue of delay in environment clearance with the states and the Centre for quite some time, but to no avail. When the state agency responsible for environmental clearance has given the go ahead at the project-approval stage, why has this issue been raised at the possession stage? If clearance at the initial stage was not as per law, statutory bodies must direct government agencies to work inclosely coordination for effective implementation of those laws; otherwise, innocent buyers and developers will face hardship for no fault of theirs.“

Manoj Gaur, the president of Credai (Western UP), says: “We respect the concerns of the NGT, but we also have a duty towards consumers. Therefore, we request the honourable tribunal to kindly direct the Noida authority to issue provisional completion certificates to projects of our member developers who have applied for the same, so that possession may be given to consumers who have booked these apartments. At the same time, the member developers are willing to give an undertaking that they shall abide by the decision of the NGT whenever it is given.“

Rakesh Yadav, the MD of Antriksh Group, says: “After the complete ban on extraction of ground water, the NGT’s directive on the NOC is a very hard decision. We hope this is rolled back and NOCs for completed housing projects is granted. As per the guidelines of the Ground Water Authority of India, the first layer of ground water in this area is not potable. Most of the builders have already taken environment clearance for their projects, and we were under the impression that the permission from the Ground Water Authority of India for extracting or de-watering is more than sufficient.“

“Our project, Homes 121, is complete but we can only give possession to our customers when we get clearance from the NGT. It has been quite some time now and the approval has been pending. As a result, both customers and developers are suffering through the delay in possession,“ Ashok Gupta, the CMD of Ajnara India Ltd, said.

“We completed JM Orchid, a group-housing project, in February itself. But we have not received the clearance from the NGT. We are hopeful for an early resolution of the issue,“ Rupesh Gupta, the director of JM Housing, said.

What is the issue?

Traditionally, this area–Noida, Greater Noida, Yamuna City–fall between two rivers, Yamuna and Hindon, and the water table in this area is very high. But the National Green Tribunal banned construction work of realty projects within 10km radius of the Okhla Bird Sanctuary located in the Delhi-Noida border near Kalindi Kunj Barrage apprehending a danger to the ground water table. Keeping this in mind the tribunal directed the Noida authority to conduct a fresh survey and find out the projects falling within this zone.

The Noida authority identified more than 105 realty projects as falling within the 10km radius of the bird sanctuary, and now, all these projects are in trouble.
The earlier ban imposed by the tribunal on drawing groundwater for construction purposes has already affected 3,000 housing units in various sectors of Noida, with developers having to stall work on them.

Arjunpreet Singh Sahni, the executive director of Solitaire Group, says: “Sometimes, developers are also unaware of such guidelines. A single-window clearance system is the only solution to avoid such miss-outs on approvals. In fact there should be a ready checklist of all the necessary approvals required for a real estate project, which would bring about complete awareness of all the required sanctions at a single point.“

Housing projects ready for possession: Due to the NGT directive, the Noida authority is presently not in a position to issue the NOC (for possession), which has already been filed by developers and builders.

If we look at the realty scenario of Noida’s market, the residential real estate assets remain popular with investors and buyers, especially those properties which are mid-sized and priced reasonably, and offering locational advantage and good infrastructure.

While there is demand for affordable housing, premium properties too have attracted buyers in prime locations like Sectors 44, 74, 75, 76, 77, 78, 94, 119, 137, 143, 142, etc. These sectors offer great scope for strong and sustained growth for all real estate segments.

In spite of everything, developers, realtors, and property professionals are all upbeat about the future prospects of real estate in this emerging location. Here the rates are still in the range of Rs 4,500-5,000 per sq ft, depending on the size of the property and its location. Properties under construction as well as ready-to-move-in projects have various options, from affordable to mid-segment, and luxury residential projects with high technology and world-class facilities. Social and physical infrastructures like educational institutes, 5-star hotels, shopping malls, hospitals, and commercial hubs have turned the area into a premium location. The proposed flyovers, underpasses, Metro link and the operational DND Expressway along with wide city roads have also made travelling and living better in residential sectors of Noida Greater Noida Expressway. All these have encouraged people to move and live here.

The prime locations of Noida Expressway and other developing sectors are now ready to provide some newly constructed ready-to-move-in houses in different realty projects like JP Wish Town, Logix Blossom Greens, Logic Blossom County , Gulshan Homz’s Vivante, Antriksh Golf View, Antriksh Forest, Antriksh Canball, Paramount Group’s Golf Foreste, Grand Omaxe, Paras Olympia, Paras Tierea, Paras Seasons, Amrapali Group’s Amrapali Silicon City, Amrapali Sapphire, Amrapali Zodiac, Amrapali Platinum, Amrapali Silicon City , Assotech Ltd’s Celeste Towers, among a host of others. These projects promise world-class facilities with good social and commercial infrastructure. Many of these high-end luxury and affordable houses are almost complete and ready for possession.

Source: Times Property, The Times of India, Delhi/NCR (http://content.magicbricks.com/industry-news/delhi-ncr-real-estate-news/noida-homebuyers-left-in-the-lurch-again/70409.html)

ICCPL PROPERTY NEWS

NOIDA AND YAMUNA EXPRESSWAY SET TO COST MORE

 

Noida: In a recent update this month, the authorities controlling Noida and Yamuna Expressway had increased the land allotment rates across all categories, except for commercial lands. The bracket seems to be a bit wide with the lowest hike being 7.8 percent and the highest 33.33 percent per square meter. The blow had been introduced with an immediate effect. With the land allotment rates increased, property prices at Noida and Yamuna Expressway are all set to go north. Greater Noida will however not see any change as this year in February the rates were increased by over 10 percent, effective from 1^st April.

With increasing land rates being executed, the developers are finding it hard to restrict the prices of newer projects. Noida has come to a point where land is available in less quantity; whereas Yamuna Expressway is a young and budding region that is enjoying lesser prices. Demand has an absolute inverse relationship with prices. Already the demand for the Noida market is on a lower side due to such high prices; and Yamuna Expressway gained momentum because of the lower prices. But this move can hamper the demand a bit especially at Yamuna Expressway.

In view to the decision of authorities; Mr. Sushant Muttreja, CMD, Cosmic Group says “Except commercial-use land, all other categories of land will become more expensive now for developers in the region following this move and property prices are expected to move upwards. The market for the investors will not be affected at all, but the future end users interested for Noida will leave a bit of a setback on demand. Although, the property prices at Yamuna expressway are still very competitive as compared to any other region of NCR so its demand might not even get affected”.

The increasing prices of lands can have a negative impact on the demand in the long run. Mr. Rupesh Gupta, Director, JM Housing says “Any form of increase in price affects the demand adversely in the future. Right now, the demand might be stagnant or even increase for the projects which are under construction. But after the current projects; every future land purchase will be costlier which will mean that the sale price will be higher which will leave a direct impact on the customer’s pockets. This will gradually start affecting the demand in the long run”.

ICCPL PROPERTY NEWS

DEVELOPERS FEEL THE NEED FOR SINGLE WINDOW CLEARANCE SYSTEM

 

Noida: In the current real estate market condition where the customers have been continuously knocking the doors of the developers due to delay in commencement and possession of the projects; the developers are eager and hopeful from that the new government will provide solutions to their problems.

A medium sized project takes around 3-4 years to construct completely, taking into consideration the changing weather conditions, changing prices of raw materials, economic conditions, unforeseen happenings and upgradations in technology. Whereas it has been witnessed that many developers are not been able to deliver the same as per the promised time period. This adds to negative market sentiments and decrease in customer moral and confidence, which further decreases the demand in the sector.

At present,the real estate projects in India have to pass through various levels of clearances from different platforms in order to complete the construction work and hand them over to the public. According to several builders, they are expected to get clearance approvals from almost 40 agencies which takes at least 12 -18 months.

At present, there are 3 clearance levels:

1. First phase is receiving approval from the urban local bodies regarding the project plan.
2. Second phase involves sewerage and water connection along with fire clearance.
3. Third phase requires civil aviation and environmental clearance from the central government level.

Mr. Ashok Gupta, CMD, Ajnara India Ltd. says “The current process involves approval from various government bodies and takes a very long time to get all the various levels clearances. This also largely adds to the possession delay in many cases apart from other construction related delays. If the single window system gets in place, there will be a lot of relief for the developers and ultimately the buyers”.

There is an urgent need for a single window system to get executed in NCR, as it will greatly reduce the time required to take approvals and hence, the timely execution and construction of the projects will take place. This will help boost the market sentiments, thereby help in shifting the demand graph to move north.

Mr. Deepak Kapoor, Director, Gulshan Homz says “The multiplicity of authorities in procuring clearances related to real estate projects is one of the major issues for delayed project delivery. The single window approval system will help the builders to get all the obligatory approvals collectively under one centre. Once the single window clearance system gets a green signal, builders can get clearances in a systematic time bound manner. This will bring down the average approval time to around 45 – 60 days; consequently the home buyers can get their homes on time. This will save the home buyers money, time and energy and also provides transparency in the real estate market”.

ICCPL PROPERTY NEWS

NGT THROWS A KNOCKOUT PUNCH AT DEVELOPERS

 

Noida: National Green Tribunal was set up on Oct 10, 2010 under the National Green Tribunal Act of 2010 for effective formulation of environmental policies and for keeping a strict vigil on commercial activities, in regard to maintaining a sound environment and to retain greenery of forests. Thus, the tribunal has been empowered with necessary jurisdiction that would deal with matters pertaining to environment and in a way, will reduce the burden of work that usually rests with higher courts for that matter.

Thus, from the realty perspective, the NGT has been in recent news for a significant reason that it did not provide the completion certificate to housing towers on the grounds that they were constructed within 10 km of the Okhla bird sanctuary. As a result, the concerned builders approached the Supreme Court for the purpose of seeking completion certificates, but the apex court declined to prevail on the issue and referred the case to Union Government for final ruling. It is to be noted here that the Union Government in New Delhi has been referred to, as the final decision about the official demarcation of boundaries as far as the eco-sensitive zone is concerned, around the bird sanctuary. However, it can be the case for protecting environment or for safeguarding bird species or of simply upholding the legal sanctity of the governmental body such as NGT, but the fact is that such a ruling has caused a great deal of agony and frustration among the developers, investors and end users.

Mr. Prashant Tiwari, CMD, Prateek Group says “It is a good step that the government has undertaken to form a body which will be responsible for clearing environmental issues for construction. But there has to be certain parameters which need to be set up in order to not discard the already constructed structures. This will hamper the real sector of NCR badly and can even go on to negatively strike the market sentiments in the Indian real estate sector, in general. NGT and government must strike a balance for this issue, so that neither the environment nor the developers loose”.

Mr. Kushagr Ansal, Director, Ansal Housing says “It will be quite harsh a decision to simply order the demolition of already constructed structures in Noida and other affected areas. It is to be noted that, most of the projects started with the construction even before NGT’s formation, and when NGT got formed, many projects were nearing completion. The sensitive zone radius had been also increased. Thus, most decisions came very late and earlier all necessary approvals and sanctions were provided. The court must look into this matter once again and should overlook the previous decision; as many units, money, time and effort of several investors, customers and developers”.