As housing demand continues to be strong during this festive month despite a rise in interest rates on home loan from 6.5 per cent to around 8.5 per cent, the property consultant has forecast that sales would touch 3.6 lakh units in the full 2022 calendar year.
Housing sales are likely to hit an all-time high this year at 3.6 lakh units in seven major cities on a strong demand across all price categories despite hardening of interest rates on home loans and property rates, according to Anarock.
The previous high was recorded in 2014 when housing sales stood at 3,42,980 units across primary markets (fresh sales only) of seven major cities -- Delhi-NCR, Mumbai Metropolitan Region (MMR), Kolkata, Chennai, Bengaluru, Hyderabad and Pune.
As per the data of property consultant Anarock, the sales of residential properties have reached 2,72,710 units during January-September period of the current calendar year and already breached the 2019 number -- pre-COVID year -- of 2,61,360 units.
As housing demand continues to be strong during this festive month despite a rise in interest rates on home loan from 6.5 per cent to around 8.5 per cent, the property consultant has forecast that sales would touch 3.6 lakh units in the full 2022 calendar year.
"2022 will create residential market history in India, having already breached all previous highs and continuing to witness strong sales momentum in the ongoing festive season," Anarock group Chairman Anuj Puri said.
"Homeownership sentiment retained the vibrancy ushered in by the COVID era - despite interest rates hikes (by RBI) of 190 basis points, increased property rates, and the conspicuous lack of festive season offers and discounts this year," he added.
Housing prices have risen by at least 10 per cent in the last year.
Recently, HDFC Capital MD Vipul Roongta noted that housing demand in India would remain strong in the coming years as demographic dividend and relatively buyers' less reliance on home loans will sustain the momentum despite higher interest rates.
Housing sales stood at 3,18,400 units in 2013; 3,42,980 units in 2014; 3,08,250 in 2015; 2,39,260 units in 2016; 2,11,140 units in 2017; 2,48,310 units in 2018; and 2,61,360 units in 2019.
Sales plunged to 1,38,340 units in 2020 due to the COVID pandemic and the imposition of nationwide lockdown to curb the spread of this disease.
The housing market revived in 2021 calendar year, and the sales bounced back to 2,36,520 units during the same period, but fell short of the pre-COVID number.
Anarock noted that end-users and investors continue to zero in on projects by large and listed developers.
However, new launches in 2022 will remain lower than the previous peak of 2014, which saw 5,45,230 homes launched across the top seven cities.
The current trends indicate that launches in these seven cities will exceed 3.4 lakh units throughout 2022.
The first nine months of 2022 saw 2,64,780 units launched in the top seven cities.
In the last 18 months, all major listed real estate developers have been reporting decent to high growth in their sales bookings numbers.
Bengaluru-based Prestige Estates, Macrotech Developers (Lodha group), Godrej Properties, and DLF Ltd are the top performers in annual sales bookings.
Other listed entities, including Oberoi Realty, Sobha, Mahindra Lifespace, Indiabulls Real Estate, Brigade Enterprises, Puravankara Ltd, and Shriram Properties are also giving them tough competition.
Thursday 27 October 2022
Housing Sales In Top 7 Cities May Hit Record 3.6 Lakh Units This Year: Anarock
Monday 17 October 2022
Property registrations in Mumbai continue to scale heights
Property sales during Navratri - between September 26 and October 4 - recorded a 14% year-on-year growth at 3,659 apartments, against 3,025 homes sold during the previous Navratri period between October 7, 2021, and October 15, 2021, showed the data from the inspector general of registration, Maharashtra.
Property registrations in the country's most expensive real estate market have continued its upward momentum in the ongoing festive season, notwithstanding the rising interest rates.
Property sales during Navratri - between September 26 and October 4 - recorded a 14% year-on-year growth at 3,659 apartments, against 3,025 homes sold during the previous Navratri period between October 7, 2021, and October 15, 2021, showed the data from the inspector general of registration, Maharashtra.
The daily average sale during the Navratri period this year rose to 407 compared with 356 in 2021's Navratri festive season.
"The Mumbai residential market has seen a great response from home buyers during the auspicious days of Navratri, which indicates that the sentiments towards home ownership have remained strong despite the recent hikes in home loan rates," said Shishir Baijal, CMD, Knight Frank India. "This is also because other factors like property prices, income levels, etc., have remained stable during the last six months apart from a positive GDP growth projection."
He expects the forthcoming days of the Diwali festival to continue to witness an uptrend owing to the positive sentiment and festive incentives offered by real estate developers to prompt higher sales.
"The higher number of enquiries and conversions of those into actual sales is providing us confidence that the sentiment among homebuyers continues to be positive," said Boman Irani, president, CREDAI-MCHI. "Various incentives offered by real estate developers are helping homebuyers realise their dream of buying a house. We expect this momentum to continue during the festive season."
Realty developers across key property markets have been offering incentives like complete stamp duty waiver, interest subvention schemes, home exchange offers, lower down payments, free luxury interiors, and GST waiver, in addition to the usual gifts such as cars and gold coins on bookings during the festive season.
Realtors have also started to undertake mitigating measures to soften the impact of the rising interest rate regime on prospective homebuyers' affordability levels and to support the continuation of robust sales momentum.
Property transactions in Mumbai have been setting new benchmarks for more than two years following the state government's decision to provide a limited window stamp duty reduction starting in September 2020.
This limited period stamp duty reduction window ended in March 2021, but which proved to be a major catalyst for the city's housing market, and the deals have continued to flow in although the benefit of lower stamp duty is not available any more.
It scaled yet another peak by recording the best September performance in terms of registration of real estate deals and revenue collection through the stamp duty charges, despite rising interest rates and a Shraadh period that is usually considered inauspicious by most Hindus.
The country's commercial capital has registered 8,628 property transactions during the month, up 11% from a year ago, while the exchequer has fetched a 39% higher revenue worth ₹734 crore through stamp duty collections.
Maharashtra: E-registration from builder's office gets push, citizens to get papers within 24 hours
The time taken to deliver the documents by email will now be brought down from the earlier 48 hours to 24 hours, or the next day, officials said.
PUNE: The state property registration department, as part of efforts to increase e-registration of new properties from developers' offices and ease rush at registration counters, is planning to ensure buyers get their registered documents by the next working day.
Department officials said they're expecting a surge in registrations before Diwali, especially e-registration of first-sale units from developers' offices.
The time taken to deliver the documents by email will now be brought down from the earlier 48 hours to 24 hours, or the next day, officials said.
"We're thinking of reducing the time taken for delivery of documents. This will encourage more developers to adopt e-registration. The new software is working well so it is possible for more developers to participate in the process," said state Inspector General of registration and stamps Shravan Hardikar.
"Currently, only 10 documents are e-registered daily across the state from developers' offices. We are hoping to take that number to 100 within the next three months," he said, adding that a set of six e-registrars will ensure there is speedy disposal of registrations.
Deputy IGR (IT) Suhas Mapari said buyers will be sent the registration documents and index-2 by mail the very next day.
"A dashboard has been created to monitor these e-registrations. It will also record the number of daily documents clearance," he said.
A citizen registering from the developer's office will get an intimation via SMS, or email and the information can be moved to the person's DigiLocker, Mapari added.
Thane: 6-lane Ulhas bridge 80 per cent complete
980-metre-long structure likely to be thrown open to traffic by April-May 2023
The six-lane bridge across the Ulhas river on the proposed Mothagaon-Mankoli road is around 80 per cent complete.
The 980-metre-long structure is being constructed by the Mumbai Metropolitan Region Development Authority (MMRDA).
This all-important route will divert traffic and provide MMR-level connectivity through the proposed Kalyan Ring Road-Katai Naka-Badlapur-Karjat.
The bridge is expected that the bridge will be thrown open to traffic by April-May in the coming year.
An MMRDA official said, “This arterial connector will decongest and solve traffic issues in the Mumbra, Shilphata, Kalamboli and Panvel areas.”
In July 2019, the state forest department handed over 1.44 acres of mangrove land to the MMRDA after receiving approval from the Ministry of Environment, Forest and Climate Change.
The construction of the bridge on the Mankoli-Mothagaon road is being carried out at a cost of over Rs 223 crore.
Once completed, the bridge will act as an important link between Thane and Dombivli via the Mumbai-Nashik Highway. It is estimated to help reduce the travel time between these two cities in the MMR by around 30 minutes to an hour.
Rs 223
The cost of building the bridge (in crores)
Institutional investments in Indian real estate touch $3.6 billion in Jan-Sep: Colliers
As per the data, Delhi-NCR attracted institutional investments worth USD 754 million during the first nine months of this year, compared to USD 301 million in the year-ago period.
NEW DELHI: Institutional investments in Delhi-NCR's real estate market jumped 2.5 fold year-on-year to USD 754 million during January-September, according to Colliers India
The total investments in Indian real estate rose 18 per cent to USD 3.6 billion during January-September this year, from 3.03 billion in the corresponding period of the previous year. The inflows were driven by the office sector that accounted for 50 per cent share.
As per the data, Delhi-NCR attracted institutional investments worth USD 754 million during the first nine months of this year, compared to USD 301 million in the year-ago period.
In Bengaluru, investments grew 18 per cent to USD 375 million from USD 317 million. Chennai witnessed a sharp jump in inflows to USD 345 million from USD 98 million.
Institutional investments in the Mumbai real estate market rose 5 per cent to USD 477 million, from USD 452 million, but fell 96 per cent in Pune to USD 9 million from USD 232 million.
Hyderabad and Kolkata have not received any investments during January-September this year, as against USD 486 million and USD 105 million respectively in the year-ago period.
The investments in other cities or multi-city increased 54 per cent to USD 1,619 million during January-September this year, from 1,049 million in the year-ago period.
"The capital in Indian real estate is getting more broad-based with active participation also from domestic institutional and retail investors.
"Domestic capital is seen to flow across asset acquisitions, with credit in multiple asset classes with varied pooled structures," said Piyush Gupta, Managing Director, Capital Markets and Investment Services, Colliers India.
The sentiment of global investment firms to invest in India remains strong in spite of global slowdown trends, he said, adding that the current state of economics, with respect to inflation and interest rates, is not perceived to have a long-term impact.
Domestic investors have become more active in the market, with their investment inflows accounting for 18 per cent share during January-September 2022 compared to 14 per cent share during the same period last year.
However, global investors continue to dominate funding activity with higher participation in entity-led deals.
"With global investors partnering with local developers, there is ample dry powder to be invested in the Indian real estate market, especially in the office, and the industrial sectors," said Vimal Nadar, Senior Director and Head of Research, Colliers India.
Over the next few quarters, he said there might be some slowdown in deployment of funds due to the recession.
However, Nadar said the Indian market is relatively well-insulated and investors continue to view it favourably.
Maharashtra CM asks realty developers to build iconic structures in Mumbai
“When we visit South Mumbai, we see iconic structures developed by the British. We are expecting each one of you to develop iconic structures in the city and create landmarks. You can tell us if any support is needed from the government’s side for this,” said Chief Minister Eknath Shinde.
The government of Maharashtra wants real estate developers to build iconic structures in the country’s financial capital Mumbai and has sought their suggestions with regards to measures needed for the same.
“When we visit South Mumbai, we see iconic structures developed by the British. We are expecting each one of you to develop iconic structures in the city and create landmarks. You can tell us if any support is needed from the government’s side for this,” said Chief Minister Eknath Shinde.
The state government will continue to support the real estate sector given its linkages with over 250 allied industries and its contribution to job creation. However, developers will also have to contribute from their side by developing accessible and affordable homes for all, he said while speaking at a CREDAI conference.
While batting for a slum-free city with a push for affordable housing, he also reinforced that the state government is “positively” considering a reduction in stamp duty charges for registrations of property transactions and premiums paid by realty developers to the state exchequer.
Realty developers also offered to extend benefits to homebuyers if the government decides to reduce the stamp duty charges.
“We can absorb the homebuyers’ stamp duty burden entirely if the government reduces the stamp duty charges to 3% from the current level. This will help the homebuyers realize their dream of buying a house and we will also be able to register higher sales volume, revenue for the government and create more jobs,” said Boman Irani, President, CREDAI-MCHI.
As a minister of Urban Development in the previous government, Shinde had already provided concessions on premium to the real estate industry that helped its revival to a large extent and is willing to extend support to the industry even now.
Following the imposition of the metro cess, stamp duty on property registration in Pune and Mumbai, which are the country’s most expensive and largest real estate markets, have increased by one percentage point.
In Mumbai, the stamp duty is now 6% of the asset's value while it has risen to 7% in Pune, Nagpur, and Thane.
According to the minister, the government will push the redevelopment projects in the city through cluster development to ensure better infrastructure planning and rehabilitation of people at the same location rather than pushing them to the peripheral areas.
Mumbai, the country’s commercial capital, has been setting new benchmarks with property transactions over the last two years after the state government announced a limited-window stamp duty reduction.
With an objective of kick-starting the real estate sector and nearly 260 linked industries by encouraging housing sales, the state government had announced a reduction in stamp duty charges to 2% from 5% from September 2020 till the end of December 2020. Stamp duty was charged at 3% of the agreement value between January 2021 and March 31, 2021.
The significant but limited-period stamp duty reduction window that ended in March 2021, was a catalyst for the city’s residential market. While stamp duty rebates are not available now, the deals have continued to flow in.
The state government’s revenue collection through stamp duty charges has recorded its all-time high so far in 2022. The implementation of an additional 1% metro cess, combined with price increases and the sale of larger ticket size units, resulted in a 57% increase in revenue collection from January to September of this year, totaling Rs 6,658 crore.
Eight builders attend pre-bid meet for Dharavi redevelopment plan
A special purpose vehicle will be formed by the lead bidder along with the Slum Rehabilitation Authority and the Dharavi Redevelopment Authority to execute the project.
MUMBAI: A total of eight developers attended the pre-bid meeting for the Dharavi Redevelopment Project held on Tuesday.
An integrated development (residential, commercial and industrial) has been proposed on 240 hectares at an estimated cost of Rs 23,000 crore with a floor space index of over 4.
Dharavi Redevelopment Authority chief and Mumbai Metropolitan Region Development commissioner S V R Srinivas said the response for the lead bidder as also for the consultant was good. For the project management consultant (PMC), around 11 companies attended the pre-bid meeting.
A special purpose vehicle will be formed by the lead bidder along with the Slum Rehabilitation Authority and the Dharavi Redevelopment Authority to execute the project. Phase I of the project is to be completed within 7 years of issuance of commencement certificate.
The developers included a company from South Korea, UAE and the others were Indian firms, said Srinivas, adding that foreign and domestic consultant companies attended the meeting for the PMC. This is the fourth time in 18 years that the state government is making an attempt to redevelop the slum.
Rustomjee inks pact to develop 2-million-sq-ft affordable housing project in Kalyan
Realty developer Rustomjee Group has entered into an agreement to jointly develop a nearly 2 million sq ft affordable residential project on a 12-acre land parcel in Kalyan, near Mumbai. The deal marks Rustomjee Group’s foray into the eastern region on the outskirts of Mumbai.
The company, which is currently in the process of raising funds through its initial public offer (IPO), is planning to invest over Rs 500 crore to develop the project that will be completed in the next five years.
As part of the agreement, the developer will be sharing 21% of the developed built-up space of the proposed project with the landlords as their compensation.
Rustomjee Group has entered into this development agreement with three local landlords through one of its subsidiaries, Keyblue Realtors, that will undertake the execution of the proposed project.
In addition to the built-up space in the said project, Keyblue Realtors will also be paying Rs 20 crore to these land owners as a refundable deposit. The agreement was executed and registered on September 30, according to the documents accessed through CRE Matrix, a real estate data analytics firm.
Within 45 days of the registration of the joint development agreement, the developer is expected to prepare and submit a tentative master plan for the development of the project to the land owners.
This master plan is expected to comprise the layout of the said land reflecting the location of the buildings, a construction schedule and delivery timelines, and a schedule of permissions and sanctions to be obtained by the land owners.
The Rustomjee Group is planning to develop an affordable housing project on the said land parcel with residential apartments priced between Rs 50 lakh and Rs 75 lakh.
As of March 31, 2022, Keystone Realtors, which operates under the brand Rustomjee, had 32 completed projects, 12 ongoing projects and 19 forthcoming projects across the Mumbai Metropolitan Region (MMR). These include affordable, mid and mass, aspirational, premium and super-premium segments.
It has developed 20.05 million sq ft of high-value and affordable residential buildings, premium gated estates, townships, corporate parks, retail spaces, and various other real estate projects.
Boman Irani, chairman & managing director of Rustomjee Group, declined to comment for this story.
Peripheral areas of Mumbai, the country’s commercial capital, have been witnessing strong interest from real estate developers given the state government’s thrust on infrastructure projects aimed at improving connectivity and making affordable housing available to the rising population.
Last week, deputy chief minister Devendra Fadnavis reinforced the government of Maharashtra’s commitment to developing infrastructure and knowledge-based industries in and around the Neral-Karjat region near Mumbai and to developing Panvel and the Navi Mumbai Airport Influence Notified Area (NAINA) project as Mumbai 3.0.
The MMR has been witnessing a significant demand-supply gap for affordable housing.
According to a Knight Frank India study, the region registered high demand for affordable housing units, with 67% of the demand concentration being registered for units priced less than Rs 25 lakh. The demand concentration for housing units in the range of Rs 25 lakh to Rs 50 lakh was recorded at 13% and units above Rs 50 lakh at 20%.
Residential sector grows 15% across top eight cities in Q3 2022: Report
Similar robust activity was observed in new launches growing 15% year-on-year (YoY) to 69,687 units in Q3 2022. All markets saw average prices increase in the range of 3% to 10% YoY during this period.
NEW DELHI: Residential sector saw an annual growth of 15% in July-September 2022 2022 to 73,691 housing units across top eight cities in the country from 64,010 in Q3 2021, according to a recent report by Knight Frank India.
This is a 20% rise regarding the quarterly average sales observed during the pre-pandemic times of 2019. While the sales volumes remain robust, they have dipped by 8% compared to the preceding quarter.
Similar robust activity was observed in new launches growing 15% year-on-year (YoY) to 69,687 units in Q3 2022. All markets saw average prices increase in the range of 3% to 10% YoY during this period.
The residential market remained resilient in the eight residential markets of India with 2,32,396 home unit sales in 9M CY2022. This is a 40% increase from 1,63,426 residential volume sales in a stable repo rate environment of 9M CY2021.
Mumbai’s sales volume of 21,450 home units accounted for 29% of the total sales amongst the top 8 markets, highest among all markets. With 13,013 units sold in Q3 2022, Bengaluru also accounted for the second largest share of sales amongst the eight markets of the country. NCR had a similar strong performance with total sales of 11,014 units during the period.
In regards with Quarters to sell (QTS), the strong uptick in sales also brought the Quarters to sell (QTS) level down to 7.1 quarters from 10.3 quarters in Q3 2021.
With respect to ticket size split, what is interesting to note is that the sale of housing units in the Rs 1 crore and above category observed a substantial rise from 14,082 units in Q3 2021 to 20,633 units in Q3 2022. This resulted in the increase in share of sales to 28% in Q3 2022 compared to 22% a year ago. This can be attributed to the homebuyers’ need to upgrade to larger living spaces with better amenities.
The share of home sales in the Rs 50 lakh- Rs 1 crore category stayed steady with 26,529 units sold in Q3 2022. On the contrary, the share of units of Rs 50 lakh and below witnessed a decline from 43% (27,524 units) in Q3 2021 to 36% (26,529units) in Q3 2022.
Prices increased across all markets in the range of 3% – 10% YoY with some of the larger volume markets of Bengaluru (10%), NCR (8%) and Mumbai (6%) registering substantial growth. This also marks the third quarterly period of consistent YoY growth in prices across all markets.
Net absorption in office space touch 9.86 million sq ft in Q2 FY23: Report
Delhi NCR and Bengaluru are the two biggest office markets in terms of Jan-Sep 2022 gross leasing activity followed by Mumbai. These three markets account for over two-thirds share of occupier activity in the first nine months of the 2022 calendar year.
NEW DELHI: The net absorption for India’s office space for the July-September quarter was up by 11% quarter-on-quarter (Q-o-Q) and recorded at 9.86 million sq. ft, according to a recent report by JLL.
The net absorption for the first nine months of 2022 (Jan-Sep 2022) stood at a three-year high of 30.3 million sq ft, backed by strong supply completions with healthy pre-commitments.
Among the four metros, Hyderabad led the way with a 31% share of net absorption, with Mumbai pushing Bengaluru to the third spot, followed by Delhi NCR. These four cities combined for an 83% share of net absorption in the quarter.
Bengaluru leads in terms of 9-month net absorption levels, followed by Hyderabad and Mumbai. All the top seven cities have seen the nine-month net absorption for 2022 at much higher levels compared to the corresponding period of 2021.
On a Pan-India basis, net absorption is also up by 107% year-on-year (Y-o-Y) for the nine-month period.
Gross leasing for the period between Jan-September 2022 is up 1.9X Y-o-Y. The nine-month gross leasing activity is higher by 88% over the same period of 2021 and 13% over the same period of 2020, marking the first full 9 months. Mumbai and Delhi NCR led the gross leasing numbers for Q3 2022 accounting for 26% and 23%, respectively.
Delhi NCR and Bengaluru are the two biggest office markets in terms of Jan-Sep 2022 gross leasing activity followed by Mumbai. These three markets account for over two-thirds share of occupier activity in the first nine months of the 2022 calendar year.
“Tech continues to remain the dominant occupier segment accounting for 27% of market share, although down from 33% Q-o-Q. Although the total space leased by Flex operators is down 45% Q-o-Q, this segment has a market share of 14%. Aided by a strong return to office, the BFSI segment has seen the share of gross leasing go up to 16% this quarter compared to 10% in the last quarter,” said Rahul Arora, head, Office Leasing Advisory, India, JLL.
Enterprises leased ~30,000 seats in flex, down by around 22% from the previous quarter. The nine-month flex seat take-up is already at an all-time peak of ~95,000 seats, with the year likely to end more than 120,000 seats. The annual flex seat take-up in 2022 alone is likely to equal or surpass the combined total of the pre-COVID years of 2018 and 2019 as well as the past two years 2020 and 2021.
“Over the next 12 months, around 50-55 million sq. ft is lined up with average pre-commitment levels of 11-12%. For assets owned by institutional landlords, pre-commitment rates stand at 24% with their share being 30% of the upcoming supply. Space requirements currently active are around 36-38 million sq ft, the same over the past one year, indicating the robustness of demand pipeline,” Samantak Das, chief economist, and head research and REIS, India, JLL.
New completions were recorded at 11.97 million sq. ft in Q3 2022, up by 8% Q-o-Q. For Jan-September 2022, new completions stand at 43.4 million sq. ft, higher than the corresponding periods for the last three years. Completions in Q3 2022 were headlined by Hyderabad and Delhi NCR which combined for a 60% share of the quarterly supply additions. Almost 46% of the new supply infusion was pre-committed in Q3 2022.
A significant part of this came from new completions in Hyderabad, where 57% of the quarterly supply was pre-committed. Bengaluru saw an 89% pre-commitment rate in its new completions. Chennai and Delhi NCR also saw pre-commitment rates of 55% and 34%, respectively in their new completions.
The vacancy has remained at 16.0%, stable q-o-q, and expected to remain sticky within this range of 16-17%, according to the report.
Thane: MMRDA told to fast-track Kalyan-Taloja Metro-12 project
Metro work is being carried out between Thane-Bhiwandi and Kalyan in the Thane district and there is a plan to connect this metro line with Taloja and Navi Mumbai.
Kalyan constituency Member of Parliament (MP) Dr Shrikant Shinde met the Mumbai Metropolitan Region Development Authority (MMRDA) commissioner S.V.R Srinivas and reviewed various infra projects of MMRDA for Thane district and directed the commissioner to fast-track the proposed Metro-12 project from Kalyan to Taloja.
Earlier, Maharashtra Chief Minister Eknath Shinde, on the insistence of local MP Dr Shrikant Shinde, had instructed the MMRDA to speed up the proposed multi-purpose Metro-12.
Metro work is being carried out between Thane-Bhiwandi and Kalyan in the Thane district and there is a plan to connect this metro line with Taloja and Navi Mumbai.
20.75 km route has been prepared for Metro-12:
As per the information from the MMRDA officials, a total route of 20.75 km has been prepared for Metro-12. Its first station will be near Kalyan (West) near Agriculture Produce Market Committee (APMC) and the last station will be Taloja. A total of 18 stations are planned on this route. A consultant has also been appointed for the project, and soon, the work will begin.
"The MMR will develop rapidly when the Kalyan-Taloja metro will start as Kalyan will be directly connected to Navi Mumbai via Metro," said MP Shinde.
A senior official from MMRDA said, "A meeting was held with the Kalyan constituency MP and other officials like Kalyan-Dombivali Municipal Corporation (KDMC) commissioner Dr Bhausaheb Dangade and other officials were present. Shinde reviewed the various infra projects in the Thane district. The much-awaited Kalyan-Taloja Metro project was reviewed, and soon, the work will be initiated. The total cost of the construction is planned at Rs 4,132 crore."
Builders want government to reduce stamp duty, table proposal before Maharashtra CM
Developers have made a demand to the state government to provide a partial waiver in stamp duty payment to boost sales of real estate in Maharashtra. The proposal was mooted on October 3 to Chief Minister Eknath Shinde.
PUNE: Developers have made a demand to the state government to provide a partial waiver in stamp duty payment to boost sales of real estate in Maharashtra. The proposal was mooted on October 3 to Chief Minister
National Real Estate Development Council (Naredco) president Rajendra Pate and Pune Naredco secretary Abhay Kele told TOI that as the demand was put forth, the CM has suggested preparing a detailed presentation with all projections of revenues for the state government.
"We appealed to make stamp duty 50% and add the balance 50% from developer members of Naredco. We intend to offer zero stamp duty to homebuyers," said Kele. He explained that if the state government were to reduce the stamp duty by half, it would be taken on by the developers, resulting in zero stamp duty to homebuyers.
Many developer bodies across the state besides Naredco have been demanding this reduction since last year. Confederation of Real Estate Developers' Associations of India (Credai) national vice president Shantilal Kataria said they have also been demanding that stamp duty be reduced as it does not affect the state government exchequer and only helps consumers to invest in projects.
"During the Covid-19 pandemic period, stamp duty was reduced and it was seen that the government revenue did not suffer, but transactions did increase. There were months that saw an increased transaction and revenue collection increased ," he told TOI.
The builder fraternity added that the rationale for the demand was also the rising home loan interest rate. The latest hike of half a percentage was announced last week by the Reserve Bank of India (RBI).
Shinde was in charge of the urban development portfolio previously and had pushed for relief in stamp duty payment. Builders said this decision provided impetus to the real estate sector and that they hope the CM accepts their demands and makes changes in stamp duty now.
Properties registration in Mumbai up 11% at 8,628 units in Sept: Report
Mumbai city (BMC area) saw property sale registrations of 8,628 units in September 2022 as against 7,804 units in the same month last year and 8,552 units in the previous month, the property consultant said in a statement.
NEW DELHI: Registration of properties in Mumbai rose 11 per cent last month to 8,628 units -- highest in the past 10 years for September -- despite rise in prices as well as mortgage rates, Knight Frank said.
Mumbai city (BMC area) saw property sale registrations of 8,628 units in September 2022 as against 7,804 units in the same month last year and 8,552 units in the previous month, the property consultant said in a statement.
Shishir Baijal, chairman and managing director, Knight Frank India, said, "This growth comes even though 15 days of September was 'Shraadh' an inauspicious period (when most refrain from important high value purchase) apart from the headwinds that the market has been facing due to the rise in repo rate."
He expects residential sales to remain buoyant during the festive season.
"Despite the fresh rise in repo rate which has further hit affordability in the market, we remain in the affordable threshold and can expect positive sales for some more time," Baijal added.
As per the data, 57 per cent of all registrations were in the price band of over Rs 1 crore. In terms of apartment size, homes between the size of 500-1,000 square feet were the most preferred in this month.
The consultant highlighted that 96 per cent of all property sales registrations in September 2022 were for properties transacted in the same month.
Residential properties valued up to Rs 1 core continued to be the demand driver in September, having a share of 43 per cent, followed by Rs 1 - 2.5 crore with share of 42 per cent.
The government revenue collection has also recorded its all-time high during January-September 2022.
Implementation of additional 1 per cent metro cess coupled with price rise and sale of higher ticket size units led to a YoY rise of 57 per cent in revenue collection to Rs 6,658 crore from January to September 2022.
The major players in Mumbai's primary housing market include Macrotech Developers (Lodha group), Godrej Properties, Oberoi Realty, Hiranandani group, Kalpataru Ltd, Tata Housing, Shapoorji Pallonji Real Estate, Piramal Realty, Mahindra Lifespace Developers, Indiabulls Real Estate, D B Realty, Rustomjee group, K Raheja group and Runwal Developers.
Bengaluru-based Prestige Estates and Puravankara Ltd have also entered the Mumbai market. DLF too has land in the city.
Will Maharashtra CM Eknath Shinde reduce stamp duty on property?
This specific demand was made on Sunday to Chief Minister Eknath Shinde at National Real Estate Development Council (NAREDCO) organised property exhibition in Mumbai.
Developers have made a demand to the Maharashtra government to provide either a complete or partial waiver in stamp duty payment to boost sales of real estate in the state.
This specific demand was made on Sunday to Chief Minister Eknath Shinde at National Real Estate Development Council (NAREDCO) organised property exhibition in Mumbai.
Those batting for concession were Shinde camp's MLA-cum-builder Pratap Sarnaik, Raunak Group's Chairman and NAREDCO's Vice President (West) Rajan Bandekar among others.
Providing the rationale for the demand, they referred to the rising home loan interest rate. The latest of which was done last week by the Reserve Bank of India when half a percentage was hiked. Since May, the RBI has increased the interest rate by 190 basis points or 1.90% in four monetary policy announcements.
Property buyers have to pay 6% stamp duty, which was increased by a percentage starting April 2022. The government has levied transport surcharge and metro cess for the infrastructure being created in the Mumbai Metropolitan Region.
During the pandemic, the Maharashtra government supported economic activity had reduced stamp duty to 2% from September to December 2020 and 3% between January to March 2021. The same was restored to 5% from April 2021 and increased 1% a year later.
"If the state waived off half of the stamp duty, we developers are willing to provide the balance 3% relief to the home buyers. Effectively, it will be nil stamp duty for the end consumers. This will support in increasing sale momentum for the existing housing stock inventory," said Sandeep Runwal, President, NAREDCO Maharashtra and Managing Director of Runwal Group. Currently, the industry has an inventory overhang of about four months.
In another demand, Manju Yagnik, Vice Chairperson, Nahar Group sought additional concessions for women homebuyers.
At the property exhibition, CM Shinde remained non-committal but kept the option open stating that he will consider a partial stamp duty waiver after a detailed analysis of the benefits of the concession is provided to him. During the pandemic, in the erstwhile Maha Vikas Aghadi government, he was in charge of the Urban Development portfolio and had successfully proposed and pushed for relief in stamp duty payment, this decision had provided the impetus to the real estate sector along with over 200 allied industry associated with the industry to recover from Covid-19 induced economic shock.
Last year, the MVA government provided various sops to the industry such as 50% in construction premiums paid by the builders to the state. For the homebuyers, this benefit did not get translated to an equivalent reduction in property prices. On the contrary, the builder lobby hiked sale prices of their projects wherever infrastructure and transportation networks is under construction and in proximity.
Tuesday 4 October 2022
How to check if your home is ‘vastu-compliant’?
Vastu-compliant homes have become a rage in the real estate market today. However, even though people are consciously looking for such homes, rarely do they know the significance of each Vastu feature. Here we have prepared a checklist to see whether your home is Vastu-compliant or Not.
Nowadays, vastu has become a major deciding factor for buying a home. Anything that is supposed to ensure prosperity and happiness is sure to grab the attention of a typical Indian buyer. It thus does not come as a surprise that vastu compliance has become a prime criterion among home buyers.
However, most of these buyers do not understand the finer details of the science and hence end up being dependent on the word of the developer about the vastu compliance of the property. “Though there is a lot of buzz in the market about vastu-compliant properties, not more than five per cent of the home buyers are aware of the details of the science,” says Prashant Nath, AVP ,Veez Capital.
He adds, “Preference for vastu-complaint homes differ on the basis of demographics and occupation. For instance, businessmen and ladies in the house are more inclined towards these homes”.
So, if you are planning to invest in a vastu-compliant property, here a few factors that might help you check the compliance of the property.
How to check if the property is vastu-compliant?
- Placement of toilet/bathroom
- Make sure that the toilet/bathroom is not in the north-east corner of the house.
- Ideally, it should be in the east of south-east, south of south-west or west of the north-west corner of the house.
- It is recommended to avoid such homes/apartments as there is no remedy available to negate the negative impact of this.
Placement of entrance/main door
Ideally, the entrance of your house/apartment should be in the north-east corner. However, you may choose the entrance as per your profession:
- Business – North facing entrance
- Politics - East facing entrance
- Artist/Creative - South facing entrance
- Management - West facing entrance
Placement of bedroom
No bedroom is to be placed in the south of south-west direction and the master bedroom should not be in the north-east corner. This is believed to cause loss of money, bad health, sleep deprivation and no career growth.
Placement of guest room
The guest room should be constructed in the northwest direction. This is the best place to construct a guest room. The southeast zone is considered the second-best for constructing the guest room. Avoid the northeast direction for constructing guest rooms.
Placement of kid's room
Adding to it, Kulkarni says, “The children’s bedroom should not be in the west of north-west corner. Ideally, it should be in the south-west so that a child’s head is towards the east or south direction”.
Placement of kitchen
The kitchen should be ideally placed in the south of the south-east corner, it can also be in the west, but, strictly avoid an apartment where the kitchen is placed in the north corner.
Placement of pooja room
Pooja room should be ideally placed in north-east, east or north. It should not be built under a staircase. Avoid pictures of the deceased in the pooja room. If you live in a small house, you can place your pooja room in the kitchen or living room.
Placement of garage
The ideal direction to place the garage is in the north or the east direction. You can also construct the garage in the southeast but the gate must open towards the north. Ensure the height of the garage gate is lower than that of the main entrance gate of the house.
These are the major factors which affect the vastu compliance of a house. However, these factors make a home about 30-40 per cent compliant. In order to make your house 100 per cent vastu friendly, you need to make certain internal alterations apart from the structural factors mentioned above. These include hanging a wind chime at the entrance or centre of the living room, etc.