Builders want government to reduce stamp duty, table proposal before Maharashtra CM

 Oct 05, 2022

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.

Thane: MMRDA told to fast-track Kalyan-Taloja Metro-12 project

 Oct 05, 2022

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."

Bright Dussehra for real estate: 500 houses sold in Thane

 Oct 06, 2022

Maharashtra Chamber of Housing Industry in Thane says Rs 600 crore generated in revenue.

After two years of the Covid-19 pandemic throwing curve balls at the real estate sector, it seems vibrancy has returned in Thane. The district branch of the Maharashtra Chamber of Housing Industry (MCHI) has said that 500 houses were booked on the occasion of Dussehra on October 5, generating a revenue of Rs600 crore for builders. The MCHI said this is 25% more than 2021 Dussehra.

MCHI Thane president Jitendra Mehta said, “Not just real estate, even other sectors were affected by Covid, but the market has started to improve. For Dussehra, builders offered discounts to new home buyers. They offered a scheme of paying 10% right away and 90% later. A few also offered gold coins and discounts on parking and GST, which were readily availed.”

Mehta said Ghodbunder is the preferred location. Balkum, Kolshet, Majiwada and Pokhran Road No. 2 are also popular, he said. It was also seen that buyers preferred flats in the range of Rs50 lakh to Rs2-3 crore. “We hope that the preference exhibited by customers on the occasion of Dussehra will continue. We also hope that the state government will provide some relief to builders, too,” he said.

Net absorption in office space touch 9.86 million sq ft in Q2 FY23: Report

 Oct 10, 2022

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.

Residential sector grows 15% across top eight cities in Q3 2022: Report

 Oct 10, 2022

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.

	Sales			Launches
City	Q3 2021	Q3 2022	% Change (YoY)	Q3 2021	Q3 2022	% Change (YoY)
Mumbai	15,942	21,450	35%	12,136	18,079	49%
Bengaluru	11,337	13,013	15%	8797	11250	28%
NCR	9,101	11,014	21%	8,983	10,265	14%
Pune	9,565	10,899	14%	8,615	7,463	-13%
Hyderabad	5,987	7,900	32%	9,256	11,000	19%
Ahmedabad	1,607	3,887	142%	4,257	6,188	45%
Chennai	3,610	3,685	2%	3,795	3,912	3%
Kolkata	6,861	1,843	-73%	3,128	1,531	-51%
Total	64,010	73,691	15%	58,967	69,687	18%

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.

Five tips for buying an affordable home

 October 2022

Who doesn't like living in an owned home? How nice would it be to have a place that you could set up your way and enjoy it? Riya, a data analyst, had similar thoughts. She looked forward to moving out of her rented accommodation and set up her own pad. But as with any one of us, Riya had a million doubts and needed help in choosing her home. Among many of the criteria that she had, affordability was most important.

We bring you some tips to help you choose your affordable home.

DON’T BE SWAYED BY THE GLAMOUR

When it comes to homes, it is once (for most of us at least!) in a lifetime investment. And we look for the best. So while you look for the best, it was very easy to overshoot your budget for that infinity pool or the tennis court that looks quite impressive on the brochure. These amenities may be of little use to the kind of person that you are.

It is very important to have a budget and stick to it. Do keep in mind that higher the property price, higher will be your down payment and EMIs.

RESEARCH THE LOCALITY

A common feeling is that homes on the outskirts of cities are low-priced.

They may be, but it may not be worthwhile if you work on the other end of the city and end up commuting long distances. Same goes with homes in smaller and unknown towns. Though they may look very attractive price wise, make that investment only in familiar places.

The real estate market in each city/town varies. Extensive research into the areas of each city goes a long way in making your home buying experience a pleasant one.

BE OPEN TO A SECOND SALE

Due to rapid mobility in jobs, the second sale of homes are common.

Reports suggest that 2-3-year-old properties are being sold at original prices and at a discount occasionally. So if you are not in a hurry, you may like to take time and do your due diligence well.

GO FOR READY-TO-MOVE-IN HOMES

As you sign on the dotted line on your loan documents, the EMI starts. Till the time, the property is not occupied, pre-EMI is payable by the home owner. Remember pre-EMI does not give you any income tax benefit till the house is occupied.

And at the same time, you would continue to pay rent (assuming you are in a rented house). It turns out to be a double whammy when you have to pay rent as well as EMI. So it makes sense to look for ready-to-move-in properties.

YOUR LENDER MATTERS

A home and a home loan are inseparable. So as you research for good properties, simultaneously you should also gather information on various offers available on home loans. Before you start applying for loans, a check on your credit score would be good to avoid rejections. You could also consider going in for a pre-approved home loan if it meets your requirements.

Top 10 Factors To Consider For Choosing The Right Floor In A High Rise

 

Many times a buyer is confused as to which floor is the best for home. Most of India's cities are now growing vertically, as the population in cities is rising and the space to accommodate the growing number remains limited. So, real estate developers in India are developing high-rise projects, both in luxury and affordable categories, to reach out to a large number of home buyers across different income groups.

So, if you are a home buyer and want to know which floor to choose and buy in a high-rise residential apartment project or the best floor to live, read on.

High or low, each floor has its own advantages and disadvantages. Before you make a decision, weigh all the factors involved and decide what suits your lifestyle better.

Here we have lists some factors to assist you in your home-buying experience:

1. View: Obviously, higher floors offer a better view, especially if the tower is located close to a scenic place. If this is important for you, go for higher floors.

2. Rental returns: Property surveys have proved that lower floors command better rental returns, as Indians generally have an affinity for staying closer to the ground. If you are buying a property for an investment purpose, the ground floor is the best floor in high rise building for you. People, especially in Mumbai prefer upper floors, while buyers in the Delhi-National Capital Region (NCR) and Chennai prefer ground floors. Climatic differences could be cited as a reason the difference in choice.

3. Privacy: In congested areas, however, living on the lower floors might not offer much privacy. If you love solitude and wish to avoid any kind of unwanted intrusion, a higher floor might be better for you.

4. Noise: Many home buyers prefer higher floors to minimise street noise or to avoid the noise coming from other occupants walking through the common passage. However, if the ground floor flat is not located in the common hallway and is also far from the elevators, staircase or clubhouse, then the noise would not be an issue for you at all.

5. Energy consumption: Power consumption increases as you go higher. It is so because you need to run your air-conditioners (ACs) for a longer time during summers. Also, drawing water using motor pumps could be another heavy power consumption task.

6. Security: Ground floors pose a comparatively increased crime risk, as it is easier for anti-social elements to break into lower or sub-level apartments. Overall, it also depends on the structure of your high-rise and the security measures adopted by the management of your residential society.

7. Access: For most of us, waiting for the elevator can be time-consuming. Choose to live on the ground floor or sub-floors, so you can comfortably take the stairs.

8. Family consideration: With children and elderly parents around, it is always good if your home is on a lower floor. Apart from the safety point, it also adds to the convenience factor. In addition to this, if you or someone in your family suffers from mobility impairment or has the fear of height, you should prefer living closer to the ground.

9. Light and ventilation: Apartments on the ground floor have comparatively limited light and ventilation when compared to the upper ones. Not only this, upper floors don't face mosquito intrusion as well.

10. Water seepage: It is observed that generally the top floor and the ground floor suffer from water seepage and drainage issues. It also depends upon the drainage and sanitary mechanism of the residential complex.

We hope these tips will help you make the right choice.

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