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Realty Sales Regain Momentum After Post-Demonetisation Fall

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Realty Sales Regain Momentum After Post-Demonetisation Fall

MUMBAI: Real estate sales momentum has started slowly improving across key markets after initial sharp fall witnessed post the government’s demonetisation move. Both sales and launches showing healthy levels during the fourth quarter are seen as an indicator of the market steadily making effort to reach the pre-demonetisation point.

Residential sales across top nine markets rose 13% for the fourth quarter of 2016-17 and the surge in the volume was primarily driven by Mumbai, Pune and Bengaluru, which together accounted for 57% of total sales, said a PropTiger.com report.

Total residential sales increased to 51,700 units during the quarter from 43,500 units in the previous quarter, which was marked with demonetisation. The number of launches across these cities also rose 19%, the highest in the last eight quarters. Around 51,500 units were launched in the quarter as compared to 43,250 units during the preceding quarter ended December.

According to ratings agency Moody’s Investors Service, sales volumes in India’s real estate sector had decreased by around 40% year on year in the fourth quarter of 2016, while launches dropped by around 60% during the same period.

“Sentiment in the sector has since improved. Measures in the 2017 budget will support the affordable housing segment, while reductions in home loan rates since November 2016 will improve demand,” Moody’s said in March while highlighting the sector is recovering.

Post demonetisation, there were signs of extreme caution by buyers, and real estate developers refrained from announcing any new launches during this period. Although the market may not soon move closer to the levels seen almost three years ago since when it has been in a slumber, the improvement in sales numbers is robust, experts said.

“Market has shrugged off some of the effects of demonetisation and looks ready for a recovery that will be led by affordable housing owing to various incentives offered by the government. With home loan rates going down, affordability has relatively improved across markets,” said Shishir Baijal, CMD, Knight Frank India.

While the Reserve Bank of India refrained from lowering repo rate in its recent policy meet, home loan interest rates have already eased more than 100 basis points over the last one year to around 8.6%, which is a six-year low and this is certainly prompting homebuyers to act.

The country’s largest public sector lender, State Bank of India BSE -0.89 % recently announced a further sharp 90 bps cut in home loan rate.

The revised home loan rate is the lowest level since 2009, when it had announced a teaser rate structure. On Monday, the bank reduced home loan rates further between 10 to 25 basis points, a move that will force other lenders to reduce rates. According to Baijal, implementation of Real Estate Regulatory Act is expected to boost confidence of homebuyers, who have been in wait and watch mode for some time.

Shares of listed real estate companies have also been reflecting the change in business scenario led by lower mortgage rates, improving sales momentum and impending implementation of Real Estate Regulatory Act that that is expected to boost the performance of organised players.

Source: Economic Times

Also Read: The First Two Mumbai Builders to Register Under RERA Act

 

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NTR Housing Scheme In Full Swing: Chief Minister N. Chandrababu Naidu

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NTR Housing Scheme In Full Swing: Chief Minister N. Chandrababu Naidu

On Thursday, Andhra Pradesh Chief Minister N. Chandrababu Naidu said with the estimated expense of Rs. 5,556.74 crore, the construction of more than 2,44,164 houses, out of the proposed 3,03,044, has been commenced under the NTR Housing Scheme 2017.

While addressing the second day of the Collectors’ Conference he also said the construction of the remaining houses will begin soon. He mentioned that Prakasam and the Kurnool districts are ahead of the schedule in the urban housing scheme. Also, the works are in full swing in the Nellore and the Guntur districts under the rural housing scheme.

According to Naidu, the government will complete 2.5 lakh houses by January next year and another lot of two lakh houses by June.

By October 2, 2018, the state government intends to finish the construction of all the houses and plans to celebrate with massive house warming ceremony with local public representatives. This will help them set an example for housing schemes in other states.

Also Read: Raunak Group Presents Apna Pehla Ghar Campaign

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A Mumbai Suburbs’ Swift Transformation From Industrial To A Residential Zone: Wadala

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A Mumbai Suburbs’ swift transformation from industrial to a residential zone: Wadala

An industrial zone primarily, Wadala has undergone a drastic transformation in the past decade. Now an upcoming residential area, this Mumbai suburb is one of the seven islands to form the modern Mumbai. It is located on the Harbour line of Mumbai’s railway network.

Due to its proximity to BKC, large scale land development was inevitable, thus fueling the real estate market. Wadala is bordered by Dadar on the West, Matunga on the Northwest and Sewri on the South. Nestled between south Mumbai and the suburbs, Wadala enjoys strong connectivity by road and rail to most parts of Mumbai.

It has a number of flyovers like the Anik Panjrapol Link Road, Elevated road and Santacruz flyover. Thane, CST and Chembur are connected via the Eastern Highway while the Western Highway connects the locality to Bandra and Borivali. Wadala has the biggest bus depot in Mumbai. Furthermore, the multiple infrastructure initiatives like the monorail, Truck Terminal and the expansion of Highway are in various stages of development.

All this has given rise to residential demand and pushed the property value over the last few years. One of the most populated areas in Mumbai, Wadala has a large number of old temples, churches and dargahs, university campuses, schools, reputed hospitals and is also home to a former world’s largest IMAX dome theater. There are many stores, showrooms and malls around Wadala like the R Mall, High Street Phoenix and Palladium Mall.

Ramesh Nair, COO – business and international director, JLL India says, “A decade ago, property prices at Wadala were as low as Rs 2,800 per sq. ft. and it rose to Rs 14,000 a few years ago.”  As the infrastructure plans are on their way, so are the renowned developers like Ajmera, Dosti Group and Lodha Group among others.

Wadala at present offers one of the highest returns on real estate investments in the region. All the above-mentioned developers have their luxury projects in the area.

Ajmera I-Land introduces Aeon, Zeon and Treon towers with 2, 3 and 4 BHK plush homes. Conceptualized by renowned Singapore based Architects Space Matrix, these spaces with top-of-the-line lifestyle amenities exude exemplary class and finesse. The first residential floor begins at 110 feet from the ground level and offers several modern lifestyle amenities like kid’s pool, swimming pool, gymnasium, club house, open space and landscaped gardens, yoga room, kid’s play area and senior citizen corner.

Dosti Ambrosia is a 36-storey tower nestled in the 18 Acre Township of Dosti Acres. The architecture of the project was undertaken by renowned Hafeez Contractor in the 2 and 3 BHK apartments. It offers an exclusive rooftop swimming pool with 40,000 sq. ft. of landscaped gardens. You will find all modern conveniences like Gymnasium, Tennis Court, Indoor Badminton Court, Yoga and Meditation Room, Elderly Corner, Banquet Hall, Indoor Games, Indoor Badminton Court, Guest Rooms, Restaurant, Grand Entrance Lobby, Kids Play Area, 2 Club Houses and an Amphitheatre.

New Cuffe Parade by Lodha Group offers its residents all the comforts of a world-class lifestyle. The 2 and 3 BHK homes are spread in over 23 acres of land with 15 acres of stunning landscape and 75,000 sq. ft. of the club house. It includes 11 swimming pools, an organic farm, cricket pitch and multiple themed gardens. The buildings are designed by the world renowned WOHA in Singapore and the landscape was planned by Sitetectonix in Singapore.

Also Read: Mumbai to get Building Taller than Burj Khalifa, Road Bigger than Marine Drive

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Rajasthan Government May Hike The Affordable Housing Prices

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Rajasthan Government May Hike The Affordable Housing Prices

The prices of homes under the ambitious Mukhyamantri Jan Awas Yojana are expected to be increased by the state government.

According to the sources in the empowered committee meeting to be held on Monday, a proposal to increase the cost of a low-income group (LIG) and economic weaker section (EWS) houses will be proposed. Urban development and housing (UDH) minister Srichand Kriplani will chair the meeting. The LIG and EWS houses, presently are being constructed on government lands by private builders. These homes are sold at a fixed rate of Rs 1,250 per sq feet; out of which 1000 rupees per sq ft is given by Urban Improvement Trust (UIT), development authorities and local bodies to the builders.

According to provision 4(A) and 4(B), the developers are supposed to build EWS and LIG houses on government land. Seventy-five percent of such government land can be used in building EWS and LIG houses, while the remaining 25% can be sold by the developers. However, since the rates provided by the government are less the developers are not showing interest to construct houses under these categories. Sources said, “In Jaipur, not a single developer has shown interest in constructing houses under this model. The JDA has invited expression of interest (EOI) several times.”

The UDH is leaving no stone unturned to attract the builders in order to achieve the target of constructing 10 lakh houses by 2019. The sources mentioned, “As per the new proposal, the department has proposed to provide Rs 1,600 per sq feet rate to the developers. The land rates have increased subsequently over the period of time; this is why increasing rates has become a need of the hour.”

Sources further added, “The developers are constructing G+3 buildings at present. However, it is not cost-effective. It has been proposed to construct G+2 buildings for LIG and EWS category.”

Also Read: The Impact Of Regulations On The Real Estate Market

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