Kolkata: Registration of residential sales agreements increased by 7 percent in December 2022 compared to the previous month.
Since the introduction of the stamp duty rebate by the state government in July 2021, registration figures have increased by 61% in the last 18 months compared to the last 18 months prior to that.
However, compared to December 2021, the number of registrations was 17% lower in December 2022. Homes under 500 square feet were hardest hit, with registrations declining 33% in a year. According to developers, the government’s announcement to extend the lower stamp duty rate and the rise in home loan interest rates were the two factors that contributed to the decline.
According to real estate consultancy firm Knight Frank, Kolkata Metropolitan Area reported registrations of 3,274 sales in December 2022 which is lower than November 2022, when 3,047 residential sales agreements were registered. It was considerably lower compared to the count of December 2021, when 3,968 agreements were registered.
Since the initial stamp duty cut announcement in July 2021, more than 76,000 residential properties have been registered in the city between July 2021 and December 2022. In the previous 18 months, 47,317 units had been registered.
Half of all registrations in December 2022 were for apartments between 501 and 1,000 square feet. The percentage of larger units measuring more than 1,001 square feet was 29%. 21% of the total were smaller units with up to 500 square feet.
“A further extension of the stamp duty incentive will bring relief to prospective buyers as home loans have become expensive compared to the past year and a half,” said Shishir Baijal, chairman and managing director of Knight Frank India.
“The stamp duty rebate has helped the developers sustain homebuying demand. This measure will continue to enthuse homebuyers as loan rates climb northward. The government’s continued support in this context will go a long way in sustaining and developing the housing market momentum,” said Knight Frank India senior director (east) Abhijit Das. The state government had extended the incentive to March 31, 2023, in the last month.
Hearing a plea related to earthquake preparedness, on Thursday the city government told the Delhi High Court, that out of over 10,000 buildings identified for assessing structural safety, more than 6,000 have been asked to show structural safety certificates and 144 unsafe buildings demolished. While retrofitting is in progress in respect of 89, about 4655 buildings’ structural audits have been done, said the Delhi government.
The status report was filed by the state government before a bench of Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad which listed the matter for further hearing on February 16.
As per the reports shared by the Urban Local Bodies (ULB) of Delhi and other departments on the action taken in response to the high court’s earlier order, total of 10203 buildings have been identified for assessing structural safety thus far, and notices have been issued in respect of 6192 of them, asking their owners to provide structural safety certificates or the specific or corrective action taken.
The government said it has come to notice that the Delhi Cantonment Board, Delhi Development Authority, New Delhi Municipal Council, and Public Works Department have not yet submitted the updated required information regarding the preparedness for an earthquake. The status report said that letters were issued to them in December seeking the requisite information.
The Delhi government’s report was filed through standing counsel Santosh Kumar Tripathi in a pending PIL by petitioner advocate Arpit Bhargava claiming the seismic stability of buildings in Delhi was poor and, in case of a major earthquake, there could be a large number of casualties.
In July last year, the city government had informed the high court about the proposal to conduct a structural audit of high-rise buildings and those which are two decades older and witnessing large footfall on top priority in a time-bound manner to check preparedness for an earthquake.
The petition was filed in 2015 and the high court has periodically directed the Delhi government and civic authorities to develop an action plan.
Bhargava filed a contempt petition in 2020, claiming the court’s earlier orders on making the national capital ready to face any major earthquake have not been complied with yet.
In December 2020, the high court sought responses of the AAP government, the DDA, and the three, municipal corporations to the plea seeking contempt action against them for allegedly not complying with judicial orders on ensuring the seismic stability of buildings in Delhi.
Bhargava moved an application seeking the setting up of a monitoring committee to ensure timely implementation of the action plan for strengthening the buildings, in June 2020, after 11 minor tremors struck Delhi in a matter of days from April 12, 2020, onwards.
Authorities received several directions from the court to survey whether buildings in Delhi were compliant with the norms of seismic stability, identify those non-compliant, take steps that are necessary, and develop an action plan.
“Despite serious intervention by the high court over a period of five years the authorities have shown little concern for larger public interest and did not move an inch to formulate and implement an action plan”, said Bhargava, seeking contempt action against the authorities in his plea.
On Wednesday, the state government informed the High Court that it has clarified to the Bruhat Bengaluru Mahanagara Palike (BBMP) and the Bangalore Development Authority (BDA) to consider a single entity to the entire area of the EWS quarters construction project at Ejipura.
Additionally, it said that the unused residual floor area ratio (FAR) cannot be transferred to the developer, M/s Maverick Holdings Ltd. On January 6, 2023, a meeting was held under the chairmanship of the additional chief secretary, urban development department following receipt of a BBMP communication dated December 20, 2022 (seeking guidance).
“The government considered the proposal of both BDA and BBMP in detail, while all the stakeholders were present at the meeting. The government issued a communication on January 12, 2023, clarifying that there are no distinct regulations for mixed development plan under the Act and the entire area has to be considered a single entity, and further unused residual floor area ratio (FAR) cannot be transferred” S Divakar, under secretary to urban development department has stated in the compliance affidavit.
In response to a fresh public interest litigation on the issue, the affidavit was submitted. The affidavit added that both BBMP and BDA consider the plan sanction as per rules and the responsibility of sanctioning the plan as per the Act and zonal regulations rests with them.
The matter was posted to February 6 for further consideration by a division bench headed by Chief Justice Prasanna B Varale. The court is hearing a fresh PIL, filed by the Karnataka EWS 1512 Residential Social Welfare Association, Bengaluru.
The petitioners said that though a division bench of the HC had passed an order on August 24, 2012, the terms of the said order have not been complied with, including handing over the constructed flats to the allottees.
The project
Maverick Holdings is to construct residential flats on 7.5 acres under the EWS construction project which is a public-private endeavor on a 16-acre plot. In return, the developer will get the rest of the area for commercial development.
Maverick said that about 200 apartments have been constructed and the authorities have not permitted them to utilize the area of the site meant for commercial use, as per the agreement.
House sales are anticipated to increase in 2023 and India is likely to expand its scope for real estate technology. The market value of proptech is pegged to touch $1 trillion by this year.
Housing demands are expected to increase in 2023 and along with expansion of property sales on digital platforms. Experts claim proptech companies will gradually improve as real estate deals are constantly onboarding on digital platforms.
Digital platform for initial search and to narrow down choice
The pandemic had encouraged online home buying, but real estate deals have not entirely shifted to digital platforms across the world, including India. Consumers use digital platforms for initial searches and discovery, but they prefer to deal in person. Digital platforms help people to narrow down searches. Big investments like a home are not done on impulse and buyers are still attached to the traditional habit of physical site visits as they require the tangible essence of touch and feel.
House-buying will remain hybrid
People are rapidly adopting the concept of touring their future homes through immersive virtual tours with the idea of making an online booking, looking at the convenience, security, and transparency of digital payment platforms. But they still prefer to sustain in offline mode to get maximum information relating to crucial fact checks like due diligence or quality inspection of the property. Buying homes on the internet is still in its beginning stage and will take some time to become a reality.
Indian proptech
Like major economies in the world, the rate of technology adoption in India’s real sector is still in its initial phases. Although, the proptech sector has grown significantly over the last two years and the momentum will continue to unravel in the coming years. From search and discovery to transactions, planning, and design to construction techniques, rental and property management, Proptech has already impacted every aspect of real estate. Stakeholders claim that proptech companies may experience continuous growth by 2023. The sector might see more partnerships amongst key stakeholders such as property advisors, private equity investors, developers, and technology solution providers. The IoT, AI, blockchain, Augmented reality, and hospitality tech all are growing in popularity along the protech value chain. Meanwhile, the IPO and valuation-driven approach may slow down, which we have been witnessing in the past. The unit economies will be more focused along with creating solutions for numerous issues.
Technology widened the sectors scope
Increasing homeownership demands have positively impacted proptech. PE funding has already a higher base in H1 2021 and additionally increased by five percent in H1 2022. The proptech sector had a progressive momentous in 2022 which widened the scope from only property aggregators to Virtual Reality platforms for virtual site visits enhancing the sale process, robotic inspection at the construction site, and advisory and transactional support for investors. Co-living platforms are improving with numerous offices opening up.
Proptech reducing management and operating costs
Consumers are adoptingproptech to reduce operating costs. The implementation of technology led to better searches and smarter decisions. AR/VR, 3D tours and drones to facilitate better search and discovery of properties, big data, AI, ML, blockchain for secure and transparent transactions, and Analytics to understand consumer behavior and assess current trends and risks, are some of the trends that will drive proptech in India. While the leaders are experimenting with metaverse which is a new trend, it will unlock exciting opportunities for consumers in the future to buy real estate and make digital wallet payments. All these exciting developments have increased investors’ interests around the growth of proptech, with the market expected to touch USD 1 trillion by 2030.”
Indication of improving proptech in Indian real estate
Indian real estate had experienced some chaotic times for the past couple of years, however, it has recovered and grown across demand, supply, sales, prices, and capital investments in 2022. The real estate industry is moving to the data-focused strategy and progressing with generating numbers of clients for the AI application. Incorporation of new technologies such as AI to assess client behavior and monetize the services in accordance with new-age client demands. By 2030 The Indian real estate sector is predicted to touch $1 trillion, up from $200 billion in 2021, and it would account for 13% of GDP by 2025. This is mostly due to the rising demand for homes brought on by increasing urbanization and rising personal disposable income.
Tech Startups in India India has seen a significant increase in the usage of technology over the last few years. The Indian Startup Environment claims that India has the third-largest startup ecosystem in the world, with YoY growth of 12–15% anticipated yearly. Over 50,000 businesses were founded in India in 2018, with 8,900–9,300 of them being based on technology. There were 1300 new tech firms formed in 2019 alone, which means that two to three new tech startups are established every day. This acceptance has made it possible for both service providers and customers to access the expansion of numerous sectors. E-commerce is one such sector that has experienced significant growth since the pandemic, both in terms of the number of customers it serves and its financial performance. This growth was only made possible by the use of technology and the digital transformation that occurred during the pandemic, particularly during lockdown.
Numerous large corporations have reached new heights, and numerous tiny e-commerce companies have been launched, winning over customers, and making a name for themselves. Emerging technology and tech companies are transforming the sector as a whole. They are affecting how contemporary customers engage with brands. These developments open up new business opportunities for owners of online stores and speed up the expansion of the sector.
Startups in India and how they received fundings Following are a few tech startups and the funding they received: 1. Rupeek: Online gold loans at your doorstep. HQ: Bangalore, India Funding: Sequoia, Accel, $16M Series E in 2022. 2. Innoviti Solutions: India’s leading payment solutions company. HQ: Bangalore, India. Funding: Bessemer, $25M Series D in 2022. 3. Byjus: Through its learning app, the edtech business BYJU’s is revolutionizing the way that students learn. HQ: Bangalore, India Funding: Sequoia, $800M Series F in 2022.
Jupiter: Jupiter offers digital retail banking services to users so they can keep track of their spending. HQ: Mumbai, India Funding: Sequoia, $45M Series B in 2021.
RazorPay: A cutting-edge payment gateway for India with straightforward pricing, quick integration, and fantastic service. HQ: Bangalore, India Funding: Y Combinator, $375M Series F in 2022. 6. Scripbox: With a focused emphasis on investing, cutting through the clutter and noise. Zero jargon. Zero bias. Zero fees HQ: Bangalore, India Funding: Accel, $10M Series D in 2021. 7. Gimbooks: A mobile-first bookkeeping and business management platform is provided by GimBooks. HQ: Raipur, India. Funding: Y Combinator, $0 Seed in 2021.
Impact of tech startups in India Startups have great positive impacts on the economy, such as: More job opportunities: India’s biggest issue is its high unemployment rate. The majority of new businesses, not large corporations, are responsible for creating jobs. Since startups are unaffected by recessions and are unburdened, they are able to employ more people.
Increased outsourcing: Nowadays, a lot of large corporations outsource their work to smaller businesses so they may focus on their core competencies. When these start-up businesses demonstrate their abilities, many other businesses express interest in outsourcing to India, allowing India to become a specialist in that industry. India is now evolving into a major VFX hub, for instance. Large corporations are outsourcing their work to India, which has a significant negative impact on the Indian economy.
Managing Import-Export: When our startups are able to meet the demand for a good or service, we can reduce importing of that good or service, which reduces the flow of funds to another nation and increases the movement of money inside the Indian market, which is beneficial to the Indian economy. Similarly, when we have more startups, we can make more goods and begin exporting them, which boosts the amount of foreign currency entering the Indian market.
New investments: A lot of global corporations are keeping a careful eye on the development of Indian start-ups and are prepared to spend capital that makes money for a start-up and helps to grow output, which is beneficial for the Indian economy. Additionally, a lot of startups always choose to launch their firms in India, which enhances job opportunities.
Facilitating flow of funds in the economy: When a startup creates jobs for individuals, they begin to buy goods and services, increasing the government’s revenue stream and boosting the Indian economy.
Enhances standard of living: When people have money, they will begin to purchase high-quality goods to enhance their quality of life, increasing demand for such goods, which is advantageous for our economy.
Increase in GDP: People start spending more money in the market when their income rises, which has a direct impact on a nation’s GDP and hence the economy.
Educational progress: People are constantly eager to provide their children with a top-notch education. When people earn well, they expect top-notch educational institutions, and many foreign companies are interested in investing in India, which boosts employment and the flow of money that advances society.
The Confederation of Real Estate Developers’ Associations of India (CREDAI) is an apex regulatory body for private real estate developers in India. The organization was established in 1999, focusing to transform the domestic realty landscape. CREDAI plays a significant role in making public policies for its members by representing their views to various ministries. The organization works with 13,000 developers in 217 cities across 21 states.
The body focuses on the benefits for the developers as well as construction workers by developing rules. CREDAI helps developers in case of any challenges encountered between them and government bodies and organizes skill development programs to encourage the construction workers and its members for adopting eco-friendly construction practices.
What is Credai?
It approaches to make the Indian real estate industry progressive and organized by cordially working with all stakeholders, including government representatives, finance companies, consumers, investors, policymakers, and real estate professionals.
CREDAI is a recognized partner of the government created under relevant laws and represented on various committees of policymaking. The organization engages in policy advocacy with the government, including the Ministry of Housing and Urban Affairs, the Ministry of Finance, the Ministry of Labour & Employment, the Ministry of Environment, Forests and Climate Change, the Ministry of Skill Development & Entrepreneurship and the Ministry of Civil Aviation.
Additionally, it engages with agencies such as the Bureau of Indian Standards (BIS), NITI Ayog, and the Bureau of Energy Efficiency (BEE), among others.
Process of obtaining CREDAI membership
CREDAI membership can be obtained by downloading the application form from its official website and submitting it to the state body with all details. applying to the state body.
Following is the list of details that are required to be filled in the CREDAI membership application form:
Applicant’s detailed introduction
Applicant’s name
E-mail ID
Mobile number
PAN card
Contact information
Details related to the completed and ongoing projects
Principal promoters
Employee details
Details of pending allegations
CIN/Registration number
Communication address
Local office address
Company’s seal
Applicant’s signature
The application form has to be sent via E-mail to the official address ([email protected]) once it has been filled duly with all the details correctly.
Advantages of CREDAI membership:
Following are the benefits that one can enjoy after getting the CREDAI membership:
A real estate company can easily participate in the workshops, and debates occasionally conducted by CREDAI
It allows its members to network and interact among the different entities of the real estate industry
CREDAI membership enables a real estate entity to put forth their opinion against any malpractice
Fees for CREDAI membership
Following is the membership fee payable by different associations:
Category
Membership fee
City/town-level association
Rs 1 lakh
Associate member
Rs 5 lakh
Member association state-level federation/association having at least two city/town level associations as its members
Rs 4 lakh
Overseas associate
Rs 10 lakh
Roles assigned to CREDAI –
Facilitate– CREDAI organizes workshops, seminars, round tables, and a large annual real estate conference, NATCON to bring all the private developers on a common platform and provide expert advice from real estate analysts on the builder’s concerns through this platform. It also commissions studies when it is required.
Serve- CREDAI raises concerns of developers and builders in government forums and acts as a SPOC (single point of contact) for the latest development in the realty sector in addition to suggesting modifications in policies too.CREDAI helps its members gain expert advice on various matters. Its services include making representations, raising relevant issues, and uniting the developers.
Prosper- CREDAI focuses to make the real estate industry sustainable and prospering. It ensures incessant demands for residential spaces, retail facilities, commercial spaces, and other infrastructure development. CREDAI encourages its members in gaining recognition as professional organizations. Members should adhere to CREDAI’s Code of Conduct providing clear guidelines for developers to serve customers with transparency and in an ethical manner, giving the community credibility and professionalism.
Promote- CREDAI promotes professionalism guiding its members in establishing a better professional relationship to serve their customers. It promotes a good picture of real estate through events, workshops, and grievance redressal cells before the customer, media, and the government.
Build- CREDAI is engaged in developing a good relationship between builders and the government through debate representations and active participation in all meetings conducted by the government to take opinions and feedback from the industry. Besides, it encourages a healthy relationship with international organizations. CREDAI has strengthened its relationship with the government through interactions with the Ministry of Urban Development, the Ministry of Housing and Poverty Alleviation, the Planning Commission, and the Ministry of Environment and Forests, among others, and is eager to form partnerships. It works cordially with the government on areas of mutual concern and offers an integrated industry perspective on matters like policy and regulation.
Considerations of CREDAI:
It should firmly declare the Carpet area, Super area, and Build-up area
Builders should not impose charges on parking as it is illegal to do so
Advertisements must comprise all the details regarding licenses
It should impose high penalties on builders who violate the norms, such as hiding any legal information.
CREDAI should share EDC and IDC calculations with buyers as well as the amount paid to regulatory authorities.
CREDAI formulates certain rules that must be followed to retain integrity and transparency in the realty sector. CREDAI is responsible to represent any proactive policies of the real estate industry before the government and other concerned authorities in India.
CREDAI comprises certain responsibilities apart from these which include the introduction of improved and newer techniques for the construction and promotion of workers’ interests, the dissemination of statistical information, etc. it is closely associated with many housing finance institutions and banks, as it also provides easy financing.
Including several conferences at state or regional levels, a national convention is held each year by CREDAI. It also organizes exhibitions in major Indian cities like Bangalore, Mumbai, Delhi, and Kolkata along with major world trade centers like the USA, Dubai (UAE), London, Kuwait, Saudi Arabia, and other places.
CRZ’s Tender process at Seawoods of Nerul got canceled by City Industrial Development Corporation (Cidco).
Previously environmentalists and local residents objected to the sale process of plots. Claiming that Cidco must give up on the plan to commercially exploit the CRZ plot, activists are happy over the latest developments.
Separate petitions filed by the group of citizens and Navi Mumbai Environment Preservation Society (NMEPS) challenging the tender process stating that the plot falls within CRZ zones where the construction works are restricted. The joint application said that a thick patch of mangroves is located close to the plot and in fact, the land is within the mangrove buffer zone.
While Cidco informed the cancellation of auctions of plots to the National Green Tribunal by receiving a bidding offer for 25,139 square meter plot stating that the plot was auctioned for too low from the prevailing market rate.
Meanwhile, an undertaking was submitted to NGT by Cidco, that the specific condition would be stipulated to the effect while retendering, and the area outlined by the competent authority which falls in the 50-meter mangrove buffer zone area will not be disturbed by the successful bidder as per provisions of law.
Besides, the Maharashtra Coastal Zone Management Authority(MCZMA) filed an affidavit with NGT claiming that the disputed plot partly falls under CRZ.
Environment Department and MCZMA as well informed NGT that Cidco ought to obtain the CRZ map from the National Centre for Sustainable Coastal Management (NCSCM), Anna University Chennai.
Cidco is restricted to start to retender process until the map is prepared and has to submit a report on the mapping to the NGT within a month as per the directions. The final hearing is scheduled for March 2.
New Delhi: According to the HDFC bank website, the earlier MCLR was 8.30 percent, which increased by 20 basis points to 8.50 percent, while the earlier MCLR for one month was 8.30 percent, which increased by 25 basis points to 8.55 percent.
Indian Overseas Bank (IOB) and HDFC Bank hiked their marginal cost of lending rate (MCLR) by up to 25 basis points on Monday, which made loans expensive linked to the benchmarks. The new rates of IOB and HDFC will be effective from January 10 and January 7 respectively.
According to the HDFC Bank website, the new MCLR is now 8.50 percent from earlier 8.30 percent, while the MCLR for one month is 8.55 percent up from 8.30 percent, a rise of 25 basis points.
The country’s largest private sector lender said that benchmark one-year MCLR is up by 25 basis points to 8.85 percent from 8.60 percent.
The two-year MCLR will be 8.95 percent compared to 8.70 percent, and the three-year MCLR will be 9.05 percent from 8.80 percent, up 25 basis points.
While the IOB raised the benchmark rate across all tenures by 5 basis points.
IOB said in a regulatory filing that the rates have been increased from 7.70 percent to 8.45 percent
Dehradun’s Turner Road locals alleged that the construction of illegal structures are is at a fast pace and complaints to the authorities concerned have ignored.
A local resident Pravendra Kumar said that construction maps are being passed by making false representations. A builder has used someone else’s plot for approval. Residential apartments are used to construct on industrial lands and no action has been taken by the Mussoorie Dehradun Development Authority (MDDA) on the change of land use on paper.
Another resident alleged that the map shows the entrance from one side but construction is happening on the other side. Two-storey approved structures are being extended to three-four floors. Adjacent plots are being bought and construction is happening on multiple plots, while approval has been taken only for one plot. The landscape of the whole area is changing at a very fast pace. Most of the construction work is being done by people from outside the state.
Local residents also alleged that various norms are being violated. Construction is happening on spaces that are supposed to be left vacant around the buildings. Among other irregularities, parking spaces shown on maps are being turned into small flats and these are being sold.
Multiple complaints have been registered with the district administration and MDDA but no action has been taken. Moreover, advertisements for new constructions are being shared widely.
Locals also claimed that the builders are getting support from the local authorities. Field visit by engineers or officials hasn’t led to any action. Kumar said, “ We have met senior officials multiple times regarding the rampant illegal construction but they have paid no attention. Instead, they are giving false assurance of taking strict action. Authorities must at least put a stay on the construction while they carry out the investigation.
Responding to the matter MDDA officials said that the case is sub judice and investigations are underway. One builder has been penalized and action will be taken against others as well, added a senior official.
Locals say that slapping fines is not the right solution and unless ground construction is stopped, the issue will continue to persist.
“Maharashtra government was planning to start a single window system for clearances of housing projects going for redevelopment and implement the self-redevelopment order issued in September 2019 when he was chief minister,” said deputy chief minister Devendra Fadnavis.
There are around 1.20 lakh registered co-operative societies and over 80,000 apartments, out of which 60,000 units are over 30 years old and likely to go for redevelopment.
On Monday, Fadnavis told TOI that the single window system will commence soon and this will help 30-year-old societies to start work on self-redevelopment.
A single-window system was part of the order that was issued by Fadnavis in 2019 when he was the chief minister.
He also said in October that the earlier order issued in 2019 would be implemented as written and intended and demanded by the Maharashtra Government State Co-operative Housing Federation.
The members of the federation said that the government resolution issued on the self-redevelopment of housing societies just remained on paper. Vice president of MSCHF, Mr. Suhas Patvardhsn said that they had been seeking an easier process as they wanted the issue related to the funding of these societies to be addressed.
The state federation directors are planning to schedule a meeting with Fadnavis and request him to implement the order dated September 13, 2019, which offers advantages to cooperative housing societies opting for self-redevelopment vis-a-vis additional floor space index and TDR benefits, reduction in the interest rate on loan and a single-window system.
Self-redevelopment of housing societies was the need of the hour to provide affordable housing in cities like Mumbai, Thane, Pune, and the rest of Maharashtra, said Advocate Shreeprashad Parab, expert director of MSCHF.
Shreeprasad said that self-redevelopment will help members of housing societies to get bigger flats along with the latest amenities. Under the single-window system, once the developer or the society submits the plan or proposal online, it will be audited for any lacuna and discrepancies which can then be corrected. The single-window system will ease the payment of required fees to a single department, which will be linked to other departments. The system will provide transparency and ease of doing business in speedy development of a city along with the protection of citizens’ fundamental right to a clean environment.
