Under the Pradhan Mantri Awas Yojana, all the first time buyers buying a house in Greater Noida, Noida and Yamuna Expressway will be able to avail a benefit of Rs.2.5 lakh. Until now, these cities were not eligible, as per PMAY guidelines, to receive the interest subsidies.

As per the current guidelines, interest subsidy will not be given to a homebuyer under PMAY for buying a house, if that area is notified by the development authorities like Greater Noida and Noida. Areas that are notified by the state government and statutory towns according to the Census 2011 will qualify for coverage under PMAY.

This negligence by the Ministry of Housing and Urban Poverty Alleviation led to no-benefit for buyers of Greater Noida, Noida and Yamuna Expressway. Because of this, it was very difficult for finance companies to convince homebuyers that as per the Census 2011, Greater Noida and Noida did not come under towns.

When the Housing Ministry heard about this, they took the initiative to improve the guidelines so that the areas that have been notified by the development authorities also become eligible under PMAY.

Till date, the government has managed to distribute Rs.750 crore under the scheme to more than 43000 homebuyers.

Greater Noida Industrial Development Authority (GNIDA) has uploaded the details of the under construction residential projects in Noida on their website to promote information among the homebuyers. The website of GNIDA is www.greaternoida.com. The links have been created on the website to give the information related to the progress of GNIDA’s residential projects. This way the allottees will not have to keep going to the authority offices to receive updates as they will get all the required information online.

As per the officials of Greater Noida Industrial Development Authority, the website has the details of ten work circles. Each and every work circle has a link which will show pictures and update of the projects that come under that particular circle, when clicked. After every 15 days, the progress will be updated with a new picture of the project. The information about each and every GNIDA residential project will include details like the cost, number of units being constructed, date of start of the project, date of completion of the project and possession date.

Moreover, if any of the work-circle in charge shows default in uploading the update in progress, then strict actions will be taken against him by Greater Noida Industrial Development Authority. Therefore, allottees can be sure of being regularly updated.

While real estate segment is still jostling with the post-effects of demonetization and RERA, GST is on its way to be implemented on July 1 making it more difficult for this segment to cope up. RERA was implemented on May 1 where developers are required to be registered within 3 months. Most of the builders are waiting for last minute registration for their projects. RERA will raise the cost of project as it held builders to be responsible for any delay in the project

Tax officials already disclosed that GST may derive profits to the developers and builders but the end-user will end up paying more. This shall be mainly due to the slash-down in the input cost to the developers. As against 28% of service tax over raw materials, developers shall now be required to pay 12% under GST. The builders will have lesser liability and more credit as the input tax surplus shall not be refunded to the developer.

RERA has already upscale property pricing in Bhopal by 12% and GST is expected to worsen the situation further. While GST is expected to bring rationalize tax structure, home-buyers as end users are hardly expected to derive any benefits out of it as real estate developers and builders are not expected to pass on the benefits.

Further due to economic setback, post-demonetization impacted the sales by pushing it down further quarterly. Even there is no demand of homes due to lack in employment generation.

No developer is keen to launch any new projects and in a way only distress selling is upheld in realty segment. In order to release investments, investors are selling off on-going projects under current scenario at break-even also.

Post GST rolling, it is expected that the overall cost of new project shall be inflated by 6%. Under such scenario, as no developer is taking initiative to launch new projects, it has been projected that their will be shortage of houses in Bhopal if the current situation persists.

Taking into account last 3 years sales, post RERA and demonetization, realty segment is experiencing slowest growth with low sales. Over 300 projects bearing more than 6000 units at Delhi are still waiting for their buyers. Demonetization has already pushed down property pricing by 40%

The project of developing an airport in Jewar, Greater Noida has finally got a green signal from the aviation ministry. After this approval, Jewar will become home to the second airport in Delhi NCR.

The aviation minister, Ashok Gajapati Raju, has said that they have given an in-principle approval for the development of airport at Jewar, Greater Noida, to fulfill the increasing requirements of flying.

According to him, the new airport, Noida International Airport, will have the capacity to serve around 30-50 million passengers every year in the next 10-15 years.

3000 hectares of area has been reserved for the Noida Airport. Around 1000 hectares will be used for the development of 1st phase. The expected investment for the project is Rs.20000 crores.

The problem of Occupation Certificates and Completion Certificates being given very casually just on the basis completing the paperwork has been brought up by Noida Extension Flat Owners Welfare Association. The homebuyers are will voice their concerns in front of the Greater Noida Authority as they are claiming that various flats in Noida

Extension are receiving certificates without any proper verification of completion.

The homebuyers are demanding that a team should be formed by the Noida and Greater Noida Authority which visits the apartments for verifications before giving the ultimate approval. For facilities of sewage treatment, fire certificates and disposal of garbage, fixed norms and rules are there. But these problems are faced by the residents after they have moved in. And therefore, a proper written complaint will be given to GNIDA by the homebuyers.

Three-party meetings with builders and homebuyers are constantly being conducted by the Noida Authority. Issues of maintenance and various deficiencies post-completion have been voiced in those meetings. Moreover, domestic wastes are also not drained properly which will cause huge problems in the future.

One of the biggest defaulters to Greater Noida and Noida Authority along with being a major sluggard in development of projects and delivery, the Amrapali Group has brought eight co-developers to finish the pending development work for delayed housing projects for around 20 million square feet of area.

The projects which are delayed and are to completed are
•Silicon City
•Smart City
•Centurion Park
•Verona Heights
•Princely Estate
•Golf Homes
•Dream Valley
•Leisure Park

As per the Executive Director of Amrapali Group, all the information of the co-developers including their name and credentials has been submitted with Noida Authority.

A final green signal from the Authorities of Greater Noida and Noida is expected by July End. The main motive of the entry of new developers is to complete all the delayed projects by the targets that are set in 2020.

The coming together of co-developers is based on transfer of ownership and as financiers. Therefore, the respective authorities will figure out the land ownership. But, the homebuyers are constantly showing distrust in the builder and are saying they will only trust the builder once they witness some action.

The CEO of Noida Authority, on the entire matter, said that though the Amrapali Group has requested for the consent of co-developers and financial liberty, the matter is being closely inspected and analyzed.

Finally after many assumptions, the government has announced that no advertisement will be done for future or ongoing project unless they are registered with the regulator.

This announcement will further bring downfall in the market which has seen no sales growth in the past few years.

RERA (Real Estate Regulatory Act) was passed in 2016 to bring transparency in the sector and get rid of the fraud builders to protect homebuyers’ interest. The act was implemented in May this year.

NAREDCO, the body of realtors, had submitted a presentation to Ministry of Housing and Urban Poverty Alleviation asking for some clarity on the ongoing projects’ advertisement issue and the interpretations going on for the same.

“As per section 3 (1) of RERA, the advertisements for the projects which are not registered with the real estate regulator is prohibited”, as made clear by the Ministry.

But the President of NAREDCO has said that this prohibition will severely affect the real estate sector.

The section also states that the promoters of ongoing projects should apply for the registration of the project with the authority within three months from the commencement date of RERA.

The Greater Noida Industrial Development Authority (GNIDA), following the footsteps of Noida Authority has made and uploaded a list of all the realtors who have been defaulters in making payments, including both industrial and group housing developers.

After uploading a list of defaulters on the website, which has a total of 1363 developers, GNIDA has warned them of stringent actions including the issuing of recovery certificates and cancelling of lease deed if the defaulters are not following the rescheduled payment plan.

The dues to GNIDA have amounted to more than Rs.4000 crore. Listing all the defaulters came after the authorities of Noida and Greater Noida reduced their budgets while not executing the plans of planned infrastructure because of liquidity crunch. In totality, 102 developers owe more than Rs.3000 crore to GNIDA which ultimately amounts to Rs.4056 crore after charging the penal interest, 64.7% compensation dues and lease rent.

The next are the industrial property owners in the list of defaulters who owe Rs.377 crore.

To bring transparency in the system, list of defaulters in the categories of industrial and group housing have been uploaded by GNIDA on its website – Click Here.

Against the service tax of 4.5, w.e.f. July 1, all the EMIs on the house shall attract a Goods and Service Tax (GST) @ 12%. A project already completed or near completion shall attract an interest of 12% on entire amount after July 1, 2017.

Post GST, as the builders shall not be able to claim any tax credits for the inputs employed prior to July 1, there will be additional tax burden of 7.5%. Post July 1, any invoice issued by the builder shall attract a GST @ 12%. So, if you have invested in a down-payment loan or a construction-linked, any amount that shall be paid by you after July 1 shall include GST.

Developers and government are working out to pass through of the benefits happen. Already developers are looking out for avenues wherein they could pass on the benefits arising out of input tax credits. Even over the ongoing projects, developers are keen to share the benefits.

If you bought a flat for say 50 lakhs and you have already paid an amount of 10 lakhs. Then, under the earlier service tax regime, you were required to pay 4.5% service tax. And the rest Rs. 40 lakhs, if paid after July 1 shall attract a GST of 12% over service tax of 4.5%. So, you were required to pay Rs.16,200 under service tax which is upscale to Rs. 48000 under GST now.

Developers have already started intimating buyers about this inflation on account of higher tax rates.