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Team iPropUnited

Team iPropUnited
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Reshaping The Indian Realty: 5 Important Policies Of 2017

    By
    Team iPropUnited
    -

    DelhiAs the beginning of 2016 was not so remarkable for the real estate segment, the industry was in fuss by the end of the year post to announcement of note ban. But good part is that the industry has delivered ground-breaking results in terms of sales and the new launches. Considered as the harbingers of credibility and transparency, reforms like GST and RERA have essentially put the real estate segment at par with professionally-run organisations. Following five reforms will definitely reshape the realty segment in India in 2017:

    Demonetization
    The transactions in the realty sector virtually dried up as an immediate effect of Modi government’s demonetization drive. As the secondary market visualize more impacts compared to the primary market in real estate, the prices also observe dips in secondary sector. But, as the policy is intended to curb unfair trade practices and inconsistencies, the commercial transactions are effected to be impacted in short-term. However in longer run, the move is expected to bring more credibility and transparency which result in boosting up the interest of prospective buyers and investors in real estate.

    Real Estate Investment Trusts (REITs)
    To secure the interest of smaller investors in ‘Grade A’ commercial real estate, this important move has been initiated by the government. Around 229 million sq ft of office space is REIT-compliant only, assuming it to be the 50% of the total area, the total REITs listing is expected to go up to $18.5 billion. India’s first REIT listing is expected to happen within next one year.

    Goods and Service Tax
    Bringing single largest taxation reform with the application of Goods and Service Tax (GST) is aimed to eradicate geographical barriers between various businesses by mitigating the differences in indirect taxes which are applicable across different states in India. Clarity on the applicable GST rate for the real estate segment is expected to driven out by next year.  The initial deadline for its implementation was April 1, 2017 which has been further postponed to September 8, 2017 as the initially announced date seems to be missed through. Clarity on tax credits for real estate transactions and allowance of input credit is expected to bring down the home prices.

    Benami Transactions Act  
    To curb the cash flows in real estate by unfair means and rendering property holds under fictitious names shall be curbed under this Act. Making these means a punishable offence and imposition of heavy penalty on property transactions carried out in cash by the Budget 2015-16. This move will make it next to impossible to park the unaccounted cash inflows in real estate segment.

    RERA
    With the enactment of Real Estate (Regulation and Development) Act 2016, a transparency to the real estate sector is been brought like never before. It mandates every union territory and state to establish a Real Estate Regulatory Authority (RERA) to oversee the real estate activities in their respective territories. Uttar Pradesh and Gujarat have already implemented the act. Currently only a handful of UTs and states shall implement RERA but soon it is expected to implement across all the states and UTs in India.

    With the aim to bring more transparency, these reforms surly bring a new dawn for real estate sector and will build a robust ecosystem in the days to come. From the prospective of reforms, year 2016 has been considered as a big year which will have huge positive impacts in year 2017 as the outcomes of these reforms.

    Bank Of Baroda Home Loan Rate To Be The Lowest In Industry At 8.35%

    By
    Team iPropUnited
    -

    BOBIn the series of reducing home loan rate as the post-effect of demonetization, Bank of Baroda has top the chart in slashing down the interest on home loans now at 8.35%. Bank of Baroda even outsmarted State Bank of India in this context by passing the benefits to new as well as existing borrowers.

    As a strategy to attract rivals’ customers, Bank of Baroda also waived off the switching fee to convert the base rate loan to the cheaper loans. The reduced rates are effective with a cost somewhere between ₹ 5,000 to ₹ 10,000 as switching fees in all the banks. But against the current market norm, Bank of Baroda even waived off this cost of switching for the existing customers. The benefit has been extended to the housing finance companies besides existing home loan buyers for transferring their loans to Bank of Baroda free of cost.

    The bank has revised it’s Marginal Cost of Funds based Lending Rate (MCLR) from 9.05% to 8.35 % which resulted in the reduction of interest rate by 0.7%. So for a home loan with a principle amount of ₹ 50 Lakh, the total saving for a month comes out to be ₹ 2,496 per month and a whooping ₹ 9 lakhs for tenure of 30 years. These reduced rates are lowest among all private and public banks, housing finance companies and non-banking finance companies as well.

    Bank of Baroda issued a recent statement explaining the cause of this reduction. As the MCLR dips down from 75 bps to 55 bps, the same resulted in the fall of home loan rates by 70 bps effective from January 7, 2017.

    While HDFC, ICICI and Indiabulls are charging an interest of 8.65% to women borrowers, State Bank of India is offering it at a marginally lower rate at 8.6% for loans for the amount up to ₹ 75 lakhs. The same differential in interest is applicable to other borrower’s upto ₹ 75 lakhs with State Bank of India. SBI is considered as the largest mortgage lender but still Bank of Baroda took the in slashing down rates and introduced a stiff competition in the market.

    Top 10 Ready To Move 4BHK Flats In Gurgaon Below 1 Crore

    By
    Team iPropUnited
    -

    DLF New Town Heights 1Considered as one of best destinations for real estate development and the dwelling purpose amongst NCRs, Gurgaon has given the demand for residential apartments new wings. Many renowned builders have come up with projects defining luxury to its best. Below are the top 10 ready to move apartments in 4 BHK flats in Gurgaon below 1 crore:

    DLF New Town Heights, Sector 86

    DLF New Town Heights, Sector 86
    Representative Image

    This project by DLF builders ensures “zero” wastage of space with best of amenities for its residents. The well-laid out plan for this residential project in Gurgaon is stretched across an area of 29.63 acres and has independent floors and town houses. These budgeted apartments have something for everyone like Senior Citizen sit-out for retired personnel, dedicated play area for kids and fitness facilities like swimming pool, lawn tennis etc for youth.

    Tulip Voilet, Sector 69
    Tulip Voilet GurgaonCompleted in April 2016, these ready to move apartments in Gurgaon are truly lavish and well decorated. With almost 70% of open area, the project has many eco-friendly facilities like Paved Compound, Rain Water Harvesting and Landscape Gardens. Promoted by Sh. Praveen Jain, Tulip Group feature quality control laboratories which set strict quality check standards for its projects.

    Top 10 Ready To Move 3BHK Flats In Noida Between 1-1.25Cr

    By
    Team iPropUnited
    -

    ATS Green VillageWith the surging demand of 3 BHKs apartments in Noida, developers have come up with premium residential projects within ones budget. Ranging between 90 lakhs to 1.25 crores providing best of amenities with them. Below is the list of top 11 such premium residential projects in this segment:

    ATS Green 2, Sector – 50
    ATS Greens 2 NoidaCompleted in March 2004, these ready to move apartments comes with eco-friendly facilities like garbage disposal and landscape garden. The total project stretched over 4 acres, consists of 6 towers accommodating 210 units of apartments. Amenities like socializing, security and sports are also available.

    Eldeco Aamantran, Sector – 119
    Eldeco Aamantran NoidaA project stretched across an area of 14.55 acres with 70% of open area. 9 towers accommodating 450 units, these ready to move apartments were completed in November 2014. Golf carts are available to the ferry guests marks the distinction of the project. From socializing to sports and security services, project scores good overall.

    All About Pradhan Mantri Awas Yojna – Housing For All Scheme

      By
      Team iPropUnited
      -

      PMAYShelter, Clothing and Food are the three basic human needs. The prime necessity is shelter, as it is one of the important aspects of survival and we call it a home. It is a secure space for an individual’s where they spend a good time with their family and prepare for everyday’s life struggles.
      Although urbanization is gradually taking shape and population is growing, but it shouldn’t deter our government from thinking about the weaker part of the society. Everyone needs a house for an improved civilization and meet the basic living standard. Hence, our government has taken a significant step with the launch of Pradhan Mantri Awas Yojna, ‘Housing for all Scheme’. It is specifically planned for the ones that cannot afford their own house for financial restraints. The PMAY is a Housing Solution for all the Indian citizens.

      Know More about PMAY:
      The Pradhan Mantri Awas Yojna or PMAY is a mission started by the NDA Government with a goal of ‘Housing for All” (HFA) scheme, to be achieved by the year 2022. In that year, India will be completing 75 years of Independence. It started in the year 2015, with the mission and would be accomplished by 7years – from 2015-2022.

      Our Honorable Prime Minister, Mr. Narendra Modi envisioned the Housing for All (HFA) scheme. In the joint session of the parliament on 9th June 2014, our PM conveyed that by the time our Nation completes 75 years of its independence, PMAY would offer a ‘Pucca House’ for every family complete with 24*7 electricity supply, toilet facilities, water connection and complete access in urban cities.

      Objective of PMAY – Housing for One and All
      An extensive mission of PMAY Housing Scheme aims to produce:
      • As proposed under the mission, 2 million non-slum households of the urban poor are to be covered.
      • By the year 2022, the Economically Weaker Section (EWS) and Lower Income Groups (LIG) of our society would be targeted.
      • Across the nation’s, length and breadth, 2 crore houses are to be built.
      • Complete access, 24*7 electricity, toilet facilities and water access with affordable homes.

      The Beneficiary or Targeted Groups for PMAY:
      • Scheduled Castes
      • Scheduled Tribes
      • The economically weaker section and people with low incomes in the society
      • Women of India from all castes and religions. Everyone eligible would be treated equally without any bias based on religion or caste.

      The Work of PMAY:
      The Pradhan Mantri Awas Yojna Housing Scheme would work by offering principal assistance to Urban Local Bodies (ULBs) and other agencies employed via UTs/States for:
      • Granting Subsidy for individual house enhancement/construction to the Targeted Groups.
      • Establishing Cost-Effective Housing in Partnership.
      • By providing Credit Linked Subsidy.
      • For the existing slum-inhabitants – building on-site Rehabilitation by beginning private participation utilizing poor land area as a resource.

      1Lakh – 2.30Lakh – Subsidy:
      The home buyers are to be offered a linked subsidy of 1Lakh to 2.30Lakh with the scheme.
      • As a Central Sector Scheme Subsidiary is being implemented, while other factors as Centrally Sponsored Scheme (CSS).
      • On housing loans, the current market rate of interest is 10.5%. However, under this scheme, a subsidy of 6.5% rate of interest would be offered to the targeted groups, which is 4% lower than the market rate. It would last for a time of 15years from the starting date.
      • The EWS and LIG segments would be granted a credit linked subsidy of the urban population.
      • The central government treasury would generate the subsidy.

      PMAY’s Technology Sub-Mission:
      Entire construction is to adopt latest technologies for building new apartments or units under Pradhan Mantri Awas Yojna (PMAY). Under the Ministry of Building Materials and Technology Promotion Council (BMPTC), the government would create a technical cell to support the Technology Sub-Mission.
      • Disaster resistant technologies and earthquakes. To ensure air ventilation and proper sunlight, basic concepts of designs would be adopted.
      • Concepts of green buildings utilizing organic resources.
      • Taking up innovative and modern eco-friendly technologies.
      • Prepared building plans and well-researched layout designs for various geo-climatic zones.

      PMAY’s – Three Phases:
      1st Phase: Starting from April 2015 – March 2017 – During this phase, the development of overall 100 cities would be completed.
      2nd Phase: Beginning from April 2017 – March 2019, after the completion of Phase 1, the development of 200 more cities would be covered for development.
      3rd Phase: Initiating from April 2019 – March 2022, the housing development process for all remaining Indian cities would complete its PMAY.

      PMAY’s Primary Features:
      • 4% less rate of interest value on loans from the market – for the availed houses the targeted groups or beneficiaries will receive 6.5% interest rate.
      • Affordability – Subsidy range would be granted anywhere from INR 1Lakh and INR 2.30Lakh to EWS and LIG segments of the urban population.
      • Eco-friendly development technologies must be strictly followed by construction developers.
      • The senior citizens or physically challenged would get preference for the ground floor of the houses.
      • The female applicants would get preference for house allotments.

      NCR Real Estate Not To Be Affected By New DDA Flats: Experts

      By
      Team iPropUnited
      -

      Delhi NCR Realty MarketThe Delhi Development Authority has planned to set up 16, 000 flats in the national capital. This decision of DDA will not affect the property markets of Noida, Gurgaon and Greater Noida. Experts claim that private developers provide better construction facility, maintenance, and luxuries than state-owned agencies. Also, the private developers offer high quality services to the consumers.

      However, DDA’s housing plan can be proved as catalyst as claimed by some private developers. The reason as stated is – a sluggish NCR realty market, especially in Gurgaon, has been noticed that triggered demand from the users’ end.

      Well, CBRE, the real-estate consulting firm, had opposed with the assessment. According to them, DDA flats in Vasant Kunj will consist of a high demand for its accessibility to the satellite city. DDA has taken an initiative to build over new 16, 585 flats in different places like – east Delhi, Vasant Kunj, Dwarka and Rohini. Amongst those flats, 33% will belong to high-income group (HIG) units. The price range for these 33% flats will vary between Rs.1-1.5 crore.

      Demand of SPUR, Gurgaon:
      Head for CBRE, Sivaramkrishnan has stated that the corporate people in Gurgaon prefer to stay close to their workplace. Hence, the residential market here is totally driven by them. Therefore, other micro-markets in NCR have faced less appreciation value as compared to the high-income properties in Gurgaon. This announcement will have good impact on Vasant Kunj or Gurgaon’s residential market that has good proximity to the commercial hub in Gurgaon.

      President of National Real Estate Development Council, has agreed that 5, 000 HIG flats in Vasant Kunj is not a large number to affect the NCR property market. CMD of Raheja Developers, Navin Raheja has opined that demand in ‘sluggish Gurgaon market’ will get promoted, since potential buyers would compare two markets, based on location and price.
      Superfluity of Apartments in Noida:

      Over 70, 000 are ready to settle in flats in Noida and greater Noida, as claimed by Confederation of Real Estate Developers Association of India (CREDAI).

      In the opinion of Amit Modi, Vice President, CREDAI, The Govt. is unable to offer the buyers with what they desire for. Hence, the DDA scheme will not have much impact on sales of apartments in Noida. Greater Noida flat prices are ranged between Rs. 2, 800/sq.ft. – 4, 000/sq.ft. or above, while prices for flats in Noida start at Rs. 4, 000/sq.ft.

      In a nut shell, if the private developers in Noida offer a middle-income group flat at premium price to DDA, then it might affect sales. The impact, however, will be on those who want to purchase apartments only for investment purpose. The accessibility to the location of workplace might influence the choice of buyers, as stated by Udayvir Singh, real estate consultant, Noida.

      Prime Minister Modi Set To Walk The Talk On `Housing for All’ Scheme

      By
      Team iPropUnited
      -

      ATS 1 Noida

      As the year 2016 has witnessed many ups and downs, the year was not a good one in view of reality segment. On one hand huge stocks of unsold inventory were pilled for under-construction projects jolting with low demand, the demand for ready-to-move in apartments observe a little hike on the other side. But year 2017 is expected to bring good news with a view of affordable housing.

      Prime Minister Narender Modi has announced subsidies on the home loans for lower income and weak sections to bring ownership within the reach of larger section of the society. On the eve of New year, this important announcement was made under Prime Minster Awas Yojana (PMAY) in which for loans upto Rs. 9 lakh shall attract a subsidy of 4% and for loan upto Rs. 12 lakh will attract a subsidy of 3%. Hence, obtaining a loan of say Rs. 8 lakh at 9% shall cost the borrower at 6% by receiving a subsidy of 3%.

      Central government is already providing subsidy to 6.5% points on a home loan of upto Rs. 6 lakhs under PMAY. This scheme leads to a net benefit of Rs. 2.21 lakh on a loan of Rs. 6 lakh to be paid back in 15 years. As these benefits shall be reaped by the borrowers of annual income upto Rs. 6 Lakhs i.e., Rs. 50,000 per month, this new subsidy scheme will boost up the demand in housing sector with a support to the economically-weaker section and lower-income groups.

      As the benefit under PMAY has been refrained to the individuals with annual income upto 6 Lakhs who is eligible to apply for a housing loan upto Rs. 24 lakhs, around 65% of the housing loans of the 26 Public Sector Banks are in the loan slabs under Rs. 25 lakh.

      With an emphasis on boosting the low-cost housing in a medium to long term, the benefit of the scheme can be availed on the part of loan as well. Say, if a borrower seeks a loan of Rs. 30 lakh with an annual income of Rs. 6 lakhs, he shall be provided subsidy on the interest rate for Rs. 24 lakh and the rest of Rs. 6 lakh of loan will attract the normal amount of interest.

      A benefit of Rs. 1,98,300 can be derived on a principal amount of Rs. 9 lakh for 15 years with a net subsidy of 4% point. The EMI has come down by 22% from Rs.9,128 to Rs. 7,117 bringing down the effective loan amount to Rs. 7,01,700.

      While 3% points subsidy on a home loan of Rs. 12 Lakhs for 15 years brings the EMI down by over 17%, amounting to Rs. 10,126, as against previous amount of Rs. 12,171. Thousand of crores of subsidy has already been disbursed under the Credit Linked Subsidy Scheme. NHB is the nodal agency appointed for the disbursement of these subsidies to the borrowers via bank.

      Not from the view of borrowers, this decision will bring an equal positive effect on developers by reducing their unsold inventory which will further generate the shorter revenue cycles and improved project efficiencies.

      High Judicial Intervention In Real Estate Initiates Ground Changes In 2017

      By
      Team iPropUnited
      -

      Gurgaon Flats
      The recent move on demonetization, initiated by the government is the most effective and bold step that has made impact on every sector of the economy. The year 2016 has been turbulent for real estate. Indian property market has faced headwinds on account of slowdown in business. On the other hand, the homebuyers have suffered a lot owing to judicial delays for a long period. Developers, however, are comfortable by knowing that court cases can be dragged on for years. Well, a new reality got exposed in 2016 where the judicial intervention has pointed out their delays, aberrations and defaults as well. Apart from that, they have given a new ray of hope to wretched homebuyers.

      Market Dynamics Reflect Changes Due to Judicial Intervention:
      • The dejected homebuyers are given hope that they will get whatever they have been promised by the developers.
      • Consumer and media activism are fueled by judicial intervention in the year 2016.
      • It points out all sorts of troubles individuals have to face in case of project approvals that appear to be the main reason for project delays these days.

      What are the Primary Problems Need to be Sorted Out?
      Builders are naturally concerned and they want to sort out the whole matter as well. Raj Gala Shah, partner, Zara Habitats, maintains the real estate market force and he has taken a hold of improving real estate eco-system. The focus must be to weep out unscrupulous elements. Make sure it the issues get removed not only from business, but also, from the consumer activism side. Some individuals enjoy monetary benefits while they are covered by the grab activism. However, analysts have stated that developers, who are not involved in project delaying and denying the buyers, they must welcome the judicial intervention system. Many troubles will get well-monitored if a fair judiciary intervention is performed. Also, the government departments can be pressurized to work diligently by the judiciary. An effective initiative, taken in 2016 will bring ground changes in real estate in 2017 and homebuyers will get a relief, thereon.

      Top 10 Ready To Move 3BHK Flats In Noida Between 75-90L

      By
      Team iPropUnited
      -

      Exotica FrescoWith major developments in Noida in the sphere of residential projects, builders have not let any stone unturned to introduce best of projects within the range of prospective home buyers.
      Below is the list of top 10 ready to move 3Bedroom apartments in Noida that will range between Rs. 75 lakhs to 90 lakhs:

      Mahagun Moderne, Sector – 78
      Mahagun Moderne NoidaSpread across an area of 25 acres, these ready to move apartments were completed recently in April 2016. With 22 towers housing 2235 units, 3 BHKs here are available with amenities like Video Door security, Aerobics centre, Water Softener plant, sauna, sun deck, Jacuzzi etc. A vaastu compliant project with earthquake resistance techniques.

      Supertech Emerald Court, Sector – 93 A

      Supertech Noida

      Completed in December 2011, these ready to move apartments by Supertech Emerald Court builders boasts luxury living at its best. With in-house kids Water Park, it has various entertainment and socializing amenities like Party lawn, Banquet hall and amphitheatre. The total project area is 17.29 acres approximately out of which 82% is open.

      Real Estate Fortune After Home Loan Rate Cut And Sops

      By
      Team iPropUnited
      -

      Noida

      On the New Year’s Eve, Prime Minister, Mr. Narendra Modi announced the interest subvention for housing loans for both middle class and poor. It was soon followed by rate cuts from various banks that include government-owned, State Bank of India.

      The move is welcomed by the home buyers and real estate fraternity. However, the present question that remains is, whether a rate cut can revive the chance of the real estate sector that is struggling with liquidity crunch and slow sales.
      The interest rate cut for home buyers:

      • In the past six years, 2017 begins with the lowest loan rates for housing.
      • The rate cut makes a saving of 34,000 yearly for a loan of Rs.50 lakhs.
      • The rate cut by Rs. 2,850 every month to make it Rs.41,822.
      • At present, one has to pay Rs. 44, 665 as EMI for a home loan amount of Rs.50 lakhs.

      The Impact of Job Market on Real Estate:
      The growth of job market is directly linked with the boom in housing market. The last rally of property was driven by IT/ITeS sectors. After Modi Government took charge in the year 2014, for a full year 4.93 lakhs jobs were added,, across the eight employment-intensive industries – powerloom/handloom, BPO/IT, transport, jewelry and gems, automobiles, metals, leather and textiles. According to the Labor Ministry’s 27th Quarterly Employment Survey of the 8 employment-intensive industries, the first quarter of FY 2015-16, there were almost 43,000 job losses. In 2010, at their peak, these sectors added 1.1 million jobs.

      Fundamental Challenges remain although Interest Rate Cuts may Boost Sentiments:
      The finance and accounts president, M3M – Mr. Atul Banshal maintains that rate cuts might boost sentiments that were harmed by demonetization and set off consumption demand in a big way.
      The MD of Hawelia Group, Mr. Nikhil Hawelia feels that rate cuts are substantial. He believes it will improve sentiments, which however wouldn’t be enough to revive the fortunes of the sector.

      Key Declaration Along with Rate Cut
      • An additional 200 billion would be given to NABARD to finance societies, banks and district cooperatives.
      • 3 crore Kisan credit cards would be converted to Rupay cards in the next three months. It will enable them to directly sell/buy through the card and there will be no need to rush to banks.
      • Senior citizens would receive an 8% interest on 10-year deposits for up to 7.5 lakhs.
      • For the rabi season, farmers can avail 60 days interest that the government would pay from societies, and district cooperative banks.
      • Credit guarantee from the existing limit of Rs. 1crore will be raised to Rs. 2 crore for small traders.
      • Banks are requested to raise the credit limit of small business from 20% – 25%.
      • Interest subvention of 3% would be given to villages for home renovation loans up to Rs. 2 lakhs.
      • Middle class and poor people would get home loans up to Rs. 9 lakhs and 12 lakhs for3% and 4% interest subvention, respectively.

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