CREDAI MCHI - Thane Unit

Thursday, 7 January 2016

15th MCHI Property Expo Is Back With Tagline Act Before It Is Too Late

The four-day property expo will showcase a range of luxury and affordable projects. Over 40 developers with over 300 projects and over 20 banks and home finance institutions would participate in the event.

The 15th edition of much-awaited real estate and housing finance, Thane property expo is back and would be open for public from January 15 to 18.

MCHI-CREDAI president Ajay Ashar and other committee members were present at the event. They spoke about the highlights of the expo. The expo once again has been planned and designed on a big scale and like every year, this year too the property expo would be held at Highland Gardens, Dhokali in Thane west.

The theme of this year's property expo is 'Act before it is too late'. The tagline focuses on four aspects – Thane's amazing growth story, global office culture, mall mania and clean and green outdoor. The property Expo 2016 will offer a wide range of real estate options across Thane city and peripheral areas. The expo will also provide home loan opportunities from various banks and home finance corporations.

MCHI president said, "It's high time to refer Thane just as dormitory city, as the developers are working towards making it a IT hub. Tata Consultancy Services (TCS) has acquired 2 million square ft land in the city. This would set the trend to be followed by others."

He added, "World class hospitals, schools and other utilities is the need of the hour in the city and we would go ahead to promote Thane on international level. A conclave would be organised at the property expo where in international property consultants would be invited and we would promote the city globally."

The tickets will be available on bookmyshow.com

Special attraction would be the bigger art gallery, which would showcase the work of the artists from across the city.

To read more Mumbai and Thane Real Estate Resources, visit www.mchithane.org

Contact
501, 5th Floor, Plot No - A-123/4,
Odyssey IT Park, Road No. 9,Wagle Estate
Thane (W) - 400 604, Maharashtra, India

Mobile : (+91) 9833 4583 23 E-mail: mchithane@gmail.com

Wednesday, 6 January 2016

Key factors that stood out in the year 2015

The Indian real estate sector is essentially a tale of two asset classes the office sector that rebounded in the past year and the residential real estate sector that continued to remain sluggish in the year gone by. The residential space is witnessing weak sentiments with inventory levels remaining high in key markets. The end-user demand continues to remain a sticky point in the residential space, as the sector grappled with a perceptible inventory overhang in 2015.

Some of the key factors that stood out in the year gone by have been:

- The lower-than-expected sales in the sector have led to developers constraining new supply this year, thus focusing instead on completing their existing projects.

- The January-September 2015 period saw a 36 percent decline in unit launches as a result of subdued demand.

- On the retail front, exit of retailers in select malls in Thane and Bhandup-Mulund submarkets resulted in a 4.3 percentage point increase in vacancy levels to 18.6 percent in the Q3 of 2015.

- Roughly, 54,000 units were launched in the mid-segment between the period of January and September 2015.

- Developers have aligned their projects to the market needs by right-sizing and right-pricing units to make them more affordable. They are focusing on increasing affordability for end-users by cutting down unit sizes or reducing the average selling prices, which would result in lower ticket size of apartments. For example, in Mumbai, Mulund, Thane, Goregaon and Malad (accounting for nearly 40 percent of total launches during 2013 to September 2015) have witnessed a decline in the average ticket size with Goregaon and Malad being the frontrunners (double-digit decline).

- It is important to note that private equity players still seem to be committed to the residential sector, with the asset class attracting a major chunk of total PE investment volume between the January and September 2015 period. Total PE investment volume in the residential sector increased three-fold during the nine month period to INR 141.4 bn (USD 2.2 bn).

- The 1 bedroom-Hall Kitchen (BHK) units dominated the mid-segment launches with a 49 percent contribution followed by 2 BHK units at 43 percent.

Developers are focusing on increasing affordability for the end-users by reducing unit sizes that would, in turn, lower the ticket size of apartments.

To read more Mumbai and Thane Real Estate Resources, visit www.mchithane.org

Contact
501, 5th Floor, Plot No - A-123/4,
Odyssey IT Park, Road No. 9,Wagle Estate
Thane (W) - 400 604, Maharashtra, India

Mobile : (+91) 9833 4583 23 E-mail: mchithane@gmail.com

MCHI Thane Unit Chief wants time limit to be reduced to months

President of the Maharashtra Chamber of Housing Industry(MCHI) Thane Ajay Ashar toldsaid the undue delay in the granting of permissions by various agencies which took around two years, adversely affected the construction activities.

Announcing the MCHI-CREDAI Thane Expo 2016 which will be held in Thane between January 15 and 18, here yesterday he told reporters that the ultimate sufferers were the home buyers and the builders and developers.

Giving details of this years programme, he said this was the 15th edition of its real estate and home finance exhibition. The theme of this years exhibition is 'Act before it is too late', he said.

He also said that it has been observed that once the builder goes in for the project and finance and start the process of seeking permissions it takes around two years to get the all the permissions and during this period the interest paid by him was very heavy which could be very well avoided by reducing the time period to somemonths.

As a result of this delay in the issuance of permissions both the builder and the home buyers suffered, he said.

This two-year period which is killing to the developers could be very well avoided, he stated.

He also welcomed the decision of the state government of reducing the permissions from 119 to 58 and the other one relating to the rate cards.

Replying to questions, he said that the MCHI wanted to take the Thane city to the world map and every effort was on towards that direction.

This year, the MCHI expects sale of around 2000 flats as compared to that of last year which was 1200, he said.

Also present on the occasion were founder president Mukesh Sawla and Secretary Jitendra Mehta.UNI XR RB RSA 1200

Delay in permissions to project hits builder, buyers hard: MCHI, Thane

The undue delay in grant of permissions by various agencies has affected construction activities in the district, thus affecting the home buyers, builders and developers, according to MCHI-CREDAI, Thane.

It has been observed that once a builder goes in for the project and finance, and starts the process of seeking permissions, it takes around two years to get all nods, Maharashtra Chamber of Housing Industry (MCHI)- Confederation of Real Estate Developers of India (CREDAI), Thane, President Ajay Ashar told reporters here yesterday.

During this period, the interest paid by a builder is very heavy which could be very well avoided by reducing the time period (of granting permissions) to some months, he said.

As a result of the delay in the issuance of permissions, both the builder and the home buyers suffer, he said while announcing the MCHI-CREDAI Thane Expo 2016, which will be held in the city between January 15 and 18.

The theme of this year's exhibition is 'Act before it is too late', he said. Ashar also welcomed the decision of the Maharashtra government to reduce the required permissions from 119 to 58.

Replying to questions, he said the MCHI wants to put Thane city on the world map and all efforts are on in this direction. This year, the MCHI expects sale of around 2,000 flats as compared to 1,200 last year, he said. "We are concentrating on the serious home buyers," he added.

To read more Mumbai and Thane Real Estate Resources, visit www.mchithane.org

Contact
501, 5th Floor, Plot No - A-123/4,
Odyssey IT Park, Road No. 9,Wagle Estate
Thane (W) - 400 604, Maharashtra, India

Mobile : (+91) 9833 4583 23 E-mail: mchithane@gmail.com

Monday, 4 January 2016

Consider the implications

MCHI-CREDAI has been making representations against the proposed hike in the Annual Schedule of Rate for 2016

It has been reliably learnt by MCHI-CREDAI that the government is proposing to hike the Annual Schedule of Rate or ASR for 2016. Considering its long term impact on the common citizen and the housing sector at large, it feels that the government needs to be sensitive towards and take cognisance of the sentiments of the common citizen at large.

Over the past three months, MCHI-CREDAI has been representing this issue at various levels in government, right from IGR, Revenue Minister to the Chief Minister. The government appears to be ignoring the strong market indicators and reasoning provided in these representations. Even the suggestions made by around 100 plus elected representatives seems to have been set aside. Serious doubts and questions have been raised on the very basis and methodology of fixing the ready reckoner rates.

The fundamentals of calculating ASR appear to be in complete contrast to the ground realities. In most of the cases they are artificial, especially in case of land, where not many land transactions have been reported within MMR that could become the basis for fixing the land ASR. This anomaly is only creating further room for speculation and parallel economy.

This proposed increase in ASR under the current market conditions is contrary to the policy of ‘Housing for all by 2022’ announced by the central government. The announcement of providing affordable housing to the masses shall be defeated, according to MCHI-CREDAI.

The ASR rates declared are used for the purpose of calculating property tax, stamp duty, premiums and other taxes, which in turn unnecessarily increase the burden of tax on the home buyers, manifold. MCHI-CREDAI shares that through reliable sources it is learnt that ASR linked government taxes have increased five-fold between 2008 and 2015.

It also happens that if the selling rates are lower than the market rates that difference is considered as deemed income under the income tax act and tax is collected both from the buyer and seller of the flats without any real income.

The ASR should be formulated with a vision to guide the minimum rates of property in any given area. This way, no individual or stakeholder is affected and made to unnecessarily pay higher stamp duty. The government does not in any way lose revenue because stamp duty is charged on the higher of the two rates, ASR or registered agreement values.

This request of MCHI-CREDAI has repeatedly been turned down by the IGR as is reflected in the ASR of 2015 and the previous years. By using average rate in a given area as ready reckoner rate, properties, which are otherwise of the affordable housing type and below such average, are forced to pay stamp duty at the higher average rate. Thus, average rate becomes the lowest rate in the given locality which is totally unreasonable with a direct impact on affordability.

Dharmesh Jain, President of MCHI-CREDAI, strongly feels that even today the government can take the decision to not to revise the ASR rates without any adverse impact on the government's revenue target of 2016.

Source: dnaindia.com

Contact
501, 5th Floor, Plot No - A-123/4,
Odyssey IT Park, Road No. 9,Wagle Estate
Thane (W) - 400 604, Maharashtra, India

Mobile : (+91) 9833 4583 23 E-mail: mchithane@gmail.com

Stamp duty on property won't rise for 3 months

Some good news for property buyers. You can save on registration fee and stamp duty for the property you have just bought or plan to buy during the first three months of 2016.

This year, the hike in ready reckoner (RR) rates will be effective from April 1, 2016. In other words, current rates will continue till March 31. For the first time in the history of the state's financial affairs, the new RR rates will come into effect from the first day of the financial year instead of the calendar year.

"We will announce the new rates on April 1. We cannot tell the range of the rate hike now as we will have to consider property transactions during the January 1 to March 31 period before calculating and announcing the new rates," said stamp duty and registration officials. Stamp duty experts say the hike could range from 15% to 30%.

At the end of every year, there is always a rush at registration offices due to the hike in RR rates from January 1. This year, the scene will be different. Sources said the government might also think of permanently shifting the RR rate hike every year to April 1 instead of January 1. "The governor may soon sign a notification to extend the hike by three months," said sources.

The RR rate is the base rate that determines the market value of a property on which the government collects stamp duty and registration charges in the course of a property transaction. While stamp duty is 5% of the ready reckoner or market rate, whichever is higher, registration charge is 1% of a property's total value. Since these are calculated based on RR rates, hike in the rates implies an additional burden on property buyers.

Meanwhile, government officials said the administration was thinking of hiking RR rates only for major urban centres whereas for areas such as Marathwada and Vidarbha, where property registration was poor, the hike could be negligible.

Some officials with the department of registration and stamps said they had recommended a moderate to low hike, but the state government has decided to delay its implementation to boost the sluggish property market.

Source: magicbricks.com

Contact
501, 5th Floor, Plot No - A-123/4,
Odyssey IT Park, Road No. 9,Wagle Estate
Thane (W) - 400 604, Maharashtra, India

Mobile : (+91) 9833 4583 23 E-mail: mchithane@gmail.com

Mumbai's infra projects ready to roll in 2016

After a non-so-eventful year, 2016 is set to bring "acche din" for Mumbaikars as far as infrastructure projects in both road and rail transport are concerned. Some railway projects, work on which began years ago, are expected to fructify in the New Year, while work on the ground is expected to begin on Metro corridors that will help decongest arterial roads in the western suburbs and island city in the long run.

The Monorail corridor, which missed several deadlines, is expected to be opened up to Jacob Circle in May 2016. A senior MMRDA official said "The Monorail, which operates on an 8.8km stretch since February 2014, will run on a stretch of 20km. It will take the load away from road transport and the suburban rail corridor."

Mumbai Railway Vikas Corporation (MRVC) on the other hand, plans to undertake yard-modification work in February at CST. Central Railway, which operates services at CST, plans to switch the Harbour line to 25KV Alternating Current from existing the 1500 KV DC. "We hope to roll out 12-car services on the Harbour line by May. This will increase the carrying capacity of trains, which now run with 9-car, by 33%," a senior MRVC official added. MRVC also plans to extend the Harbour line up to Goregaon by June 2016. A WR official said, "The extended line will help us divert some services to this corridor, especially between Bandra and Andheri and decongest the slow corridor on the Main line."

Work on three major railway corridors is also likely to begin. MMRDA has already invited tenders for Metro VII (Dahisar-Andheri). A MMRDA official said, "Work on the corridor can begin after the monsoon." DMRC will execute the work on Phase I (DN Nagar to Andheri) of Dahisar-Charkop-Bandra-Mankhurd corridor. The official said, "DMRC is expected to float tenders soon and work on this project will also begin around October."

Bids for the Metro III corridor (Colaba-Bandra-Seepz) are expected to be awarded before the end of the financial year. However, there is still uncertainty if the Kanjurmarg-Seepz line will be merged with this corridor as the issue of a depot for Metro III is yet to be sorted out.

The Mumbai Transharbour Link (MTHL) project may also gain momentum as MMRDA hopes to execute the loan agreement with Japan International Cooperation Agency (JICA), which is funding 80% of the project, by March 2016. A BMC official said, "We will submit the Environmental Impact Assessment (EIA) report in a month. Thereafter, we plan to begin the process to float the tenders. Soon, we will also begin reclamation along with other ancillary work."

Source: magicbricks.com

Contact
501, 5th Floor, Plot No - A-123/4,
Odyssey IT Park, Road No. 9,Wagle Estate
Thane (W) - 400 604, Maharashtra, India

Mobile : (+91) 9833 4583 23 E-mail: mchithane@gmail.com