Tag Archives: Real estate in India

Akrama-Sakrama has no answer to this big question

According to BBMP’s own rough estimates, only two lakh to three lakh properties out of the total 17 lakh properties will come under the current Akrama-Sakrama when implemented. This is just about 17-18% of the overall target of regularization. The new amendment bill passed in the assembly last week concentrates only on the penalty for smaller violations (that’s presently fixed at 25% for commercial buildings and 50% for residential).

According to BBMP officials in the revenue department, what’s presently ‘inferred’ from the enactment is that the violators must bring down their violation to the prescribed limit. But there is no answer to what happens if they don’t conform to it.

Even Bangalore minister R Ashoka admits that there are no immediate proper answers to the gross violations yet. “These violations are more in number. 100% regularization is not possible at one go. But we will have to make a start. Our immediate focus is to regularize the smaller violations,’’ said minister Ashoka.

What is the penalty for properties that have exceeded the set violation limits prescribed under the law? Akrama-Sakrama has no answer to this big question. Even the punishment for those who don’t pay penalty for violations within the set limit is also not clear as the corresponding rules to the enactment are yet to be framed.

Real estate developers are back building high-end housing

On the back of a revival in demand, real estate developers are again building super luxury apartments, say experts. About 7,000 such apartments to be delivered within a year in Mumbai alone by consultancy firms Jones Lang Lasalle Meghraj (JLLM) and Knight Frank India.The cost is not below Rs 4.7 crore for a single unit. Anand Narayanan, Knight Frank India’s national director (residential agency) said in the central business district of Bangalore,400 high-end luxury apartments are going to hit the market in the current year itself.

LLM country head and chairman Anuj Puri said “After the recession got over, real estate developers are back building high-end super luxury projects because there is good demand for such projects.” Similar high-end projects are coming up in the National Capital Region as well, but demand for such projects depend on many things, including the location of the property and its novelty.The higher cost of such products is justified because not a single one has a common design and lay-outs are also never identical, the consultants said.

Stating that there is ‘enough demand’ for such projects, both consultancy firms said that consumers are treating such projects as a consumer product for which they are ready to pay a premium.

IT sector boom results increase in demand for real estate sector

Most IT hubs like Hyderabad, Chennai, Gurgaon, Bangalore and Mumbai are witnessing higher demand for office space from IT companies.The revival of growth in the information technology (IT) industry is rubbing off on the real estate sector, too.For Santosh Kumar, CEO (operations) at leading property consultant Jones Lang LeSalle Meghraj, it is the revival of the US economy that has encouraged IT companies to start looking at India again for expansion.

Real estate players also report an increase in demand from the IT sector.Increase in the number of enquiries from the IT sector this quarter (ending March) is primarily due to the expansion in terms of hiring more manpower.Network Appliance Incorporated recently acquired a piece of land in Bangalore to expand India operations. Noida-based QA InfoTech is planning to move to a campus that will be almost double the 50,000 sq ft it currently occupies in three separate facilities.

With all large infotech companies back in hiring mode, there has been a spurt of activity in the commercial real estate segment.A demand for office space in the range of 25,000-30,000 sq ft from the IT sector is seen and this is definitely going to increase in the next couple of months.

Lucknow property tax defaulters in for trouble

Lucknow Municipal Corporation (LMC) has decided to attach the properties of erring house owners and forfeit them to recover the tax. The Corporation have been sending reminders to defaulting property owners for the past many years.LMC would soon begin the exercise of attaching the properties, and forfeiting them to recover the pending dues. The LMC would also seize the bank accounts of the defaulting property owners, in an exercise which is set to begin within a period of a week.

There are over a dozen government buildings, residential and commercial property owners who owe massive dues towards the municipal body. The combined dues of all government buildings in the state capital are estimated to be around Rs 20 crore. Urban development sources said that a recent survey has found that Lucknow has some 6 lakh odd houses, even though only some 4 lakh houses are covered. Comprehensively, the dues of Rs 30 crore could be significant given the fact that the total house tax earning of LMC happens to be in the range of around Rs 80 crore.

A senior official in the department said that the tax is either under-assessed or is not assessed at all. The municipal body has now started issuing revised tax to the house owners.In fact, the municipal corporation has drawn a list of some 150 such owners — both residential and commercial — whose outstanding house tax dues have sky-rocketed to a whopping Rs 10 crore.

Reference:

Times of India

India tops Asian real estate investment markets for 2010

Mumbai: According to a study by PricewaterhouseCoopers (PwC) and Urban Land Institute, a global non-profit education and research institute,India leads the pack of top real estate investment markets in Asia for 2010.The study is based on the opinions of over 270 international real estate professionals, including investors, developers, property company representatives, lenders, brokers and consultants.

Residential properties are viewed as more promising than other sectors and Mumbai, Delhi and Bangalore top the pack in the hotel ‘buy’ prospects as well.The report,points out that India, particularly Mumbai and Delhi, are good destinations.The relatively stronger fundamentals and the lack of dependence on foreign demand are seen as key advantages as India has managed to mitigate the severe recession that has hit most other Asian countries.

Reference:

http://www.thehindubusinessline.com

The Government may remove the mandatory three-year lock-in period for overseas investments

To boost FDI in real estate Govt may scrap 3-year lock-in

Delhi:To boost foreign direct investment (FDI) in real estate, the government may remove the mandatory three-year lock-in period for overseas investments in the sector.The department of industrial policy and promotion (DIPP) has proposed this move, with a draft cabinet note on the proposal being circulated for inter-ministerial consultations.

 

Lodha builders honored with Best Developer Involved in High-End Residential Properties

Mumbai: Lodha builders Pvt Ltd, Mumbai’s premium real estate developer, has been honoured with “Best Developer Involved in High-End Residential Properties” across India, by construction source india, which is unique in offering a holistic platform for the construction and building material industry. Construction source india had honored architects and builders for their contribution to various aspects of urban development.

 

The online building plans acceptance scheme started by PCMC

Pune: In order to speed up the working process in the administration the Pimpri Chinchwad Municipal Corporation (PCMC) has introduced the e-governance system. The introduction of e-governance system has facilitated online submission of property tax, submission of tenders, water tax and system for submission of octroi statements for a large number of industries. In addition to this, the online building plans acceptance scheme started by PCMC on a trial basis.

 

Bangalore Shifts into one BHK homes

Bangalore: Many developers in the city are looking at building— 1-BHK ranging between 500 sqft and 800 sqft with a price tag of around Rs 10 lakh to Rs 15 lakh. Electronic City, Whitefield, Marathahalli and Bannerghatta Road are the current hotspots for 1-BHK and studio apartments. Brigade Group, which just announced the launch of its value homes, says that 30% to 40% of the 10,000 units it’s expected to build would comprise 1-BHK units.

 

The new assembly complex will lead by example in the area of water conservation

Chennai: The Sewage Treatment Plant (STP) coming up inside the new Tamil Nadu Assembly complex in the Omandurar Government Estate on Anna Salai will help save about 2.5 lakh liters of water a day. The rainwater harvesting structures there will store 1.2 lakh liters while the STP, likely to come up on the Sivananda Salai side, will treat 2.5 lakh litres of water everyday.

Residential prices have started to look up in all markets

Hyderabad:According to the report, NCR and Mumbai have seen values climb up with the return of investors and an end users interest in the realty market in the third quarter ending September 2009.However, prices in cities in south India have stabilized, with the exception of Bangalore, which is still witnessing a slight correction.Rental and capital values in third quarter witnessed minimal correction in Hyderabad as price points inched closer to buyer expectations.

Delhi Government has Finalized the draft of a new legislation on property

Delhi Government has Finalized the draft of a new legislation on property


Delhi
: Delhi Government has finalized the draft of a new legislation on property aimed for checking fraudulent property transaction and will be introduced soon in Delhi Assembly. Delhi Chief Secretary Rakesh Mehta said the draft of the Delhi Urban Property Registration and Titling Act 2009 is ready and will be introduced in Delhi Assembly soon.The new legislation will provide a legal framework for granting property titles to all owners.

Flat One per cent Charge on Property Registrations

Mumbai: Revenue department has approved a proposal to levy a flat one per cent charge on property registrations with immediate effect.The decision on the one per cent property registration fee was taken by then Revenue Minister Patangrao Kadam early this year but was stayed ahead of elections. The stay was lifted by Revenue Minister Narayan Rane.

Hundreds Of Property Owners Hounded By BBMP Despite Having Paid Tax

Bangalore: BBMP has sent nearly 2 lakh notices over the past 10 days. May 30, 2009, was the last date to pay the second half installment without penalty for 2008-09. Technically, the BBMP has powers to issue notices from September. However, the process was delayed till the compilation was complete.

Online Platforms are helping Residence of Apartment communicate better

Chennai: Associations with not-so-tech-savvy members are taking help to design the online platform. Bangalore-based start-up www.CommonFloor.com claims to have its presence in 22 cities. In Chennai, the company has designed the online apartment management tool for around 1,500 communities, where services like maintenance fee tracker, issue tracker, SMS reminders for active residents and owners’ association members come installed. Online communities help address issues effectively, particularly when members have no time to attend association meetings.

 

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