Real Estate

Real Estate

A new horizon for India’s home market

The calendar year 2017 had ushered with a glimmer of hope for homebuyers and the stagnant residential market. Amid the aftershocks of demonetisation when a public sector bank lowered home loan rates, many felt that the move was to wash down the initial public angst following the note ban.
Three months on, the sentiments essay a warm sunny skyline after prolonged spells of gloom. Last week, State Bank of India, the largest public sector bank, reduced its home loan lending rates by 25 basis points for loans up to Rs 30 lakh to 8.35 per cent.

Realty set for revival with GST in place

Hit hard by November 8 demonetisation, the real estate industry is looking forward to better days after implementation of NDA government’s two biggest reforms – Rera and GST – in quick succession.
Real Estate (Regulation and Development) Act, or Rera came into effect on May 1, while the Goods and Services Tax (GST) kicked in on July 1, just two months later.
Banks have also added to the positive sentiments by cutting interest rates for home loans.

Housing rentals to decline by 10-20% in IT hubs: Report

India's software and services hubs are expected to witness a 10-20 per cent reduction in housing rents over the next three quarters beginning July, as the IT sector experiences subdued sentiment, says a report.
Industry body Assocham said owing to the pressure on hiring and annual pay rise for employees, house owners in Bengaluru, often called India's Silicon Valley, seem to have done a reality check and are accordingly slashing the rentals.

GST blues

With the planned rollout of goods and services tax (GST) just a few days away, builders as well as homebuyers remain uncertain about the potential benefits of the new indirect taxation, even as the government insists it would be a game-changer for the economy.
Says Parth Mehta, managing director, Paradigm Realty, “Implementation of GST is not going to be as smooth as expected. There is bound to be some inflation with increased tax rates. The dual central and state government compliance is another issue that could turn out as a huge challenge for exports to different states.”

Re-branding Realty

Gone are the days when a real estate brand in India was recognised by its sheer market size or sales performance and revenues.
Since many real estate companies are not listed on the stock exchanges, it is very difficult to know for sure their track record of performance and growth to establish their leadership.

Middle class dream fuels housing boom

When he was little and his father was building his taxi business, Pradeep Yadav lived in a chawl in Mumbai. The apartment had one light, a fan and water for just two hours a day.
Now he stands at the vanguard of a potential housing boom that brokerage CLSA India estimates could reach $1.3 trillion in the next seven years. With their three boys finished university, the family bought a flat in Palava City, a leafy township on the edge of the metropolis. Outside their balcony, tidy footpaths wind their way past manicured gardens and a swimming pool glints in the summer heat.

Developers going slow on Rera

Real estate developers are finding it challenging to comply with procedures laid down for registration of ongoing projects under the Real Estate (Regulation and Development) Act (Rera).
Consequently, not many projects have been registered under the Act so far. Developers have time till July 31 to register their ongoing projects.

Demo weighs

Prime minister Narendra Modi’s abrupt announcement of banning high denomination currency notes of Rs 500 and Rs 1,000 on November 8, 2016, kept everyone wondering about its impact on the real state sector.
A recent Grant Thornton report, Indian Real Estate Sector – Annual Handbook 2017, along with realtor’s body Credai, provides some clues: it anticipates that housing prices may go up by as much as 20 per cent due to the note-ban impact.

Boosting India’s Green growth

Today, India is witnessing a positive change in the corporate and government sector, with respect to green development, which is an opportunity for the country to exercise environmental stewardship, accelerate economic growth and strengthen governance, while achieving social justice.