Jayashree Kurup, editor of Magicbricks.com says that PM Modi has actually brought the end-user into sharp focus with his move. Three years ago, when there was a spate of launches in the North Indian market, the end user was the eighth transactor in that process.
NEW DELHI: After the Narendra Modi government on Tuesday withdrew the Rs 500 and Rs 1000 note out of circulation in a major move against unaccounted wealth, the real estate sector has begun to feel the heat. But Jayashree Kurup, Editor of Magicbricks.com, thinks that in the long run, we’re going to see a more responsible, transparent real estate sector thanks to the PM’s move. Kurup on Friday also spoke to TOI about the immediate repercussions of the ban for the sector, and about the specific sub-sectors that will be affected most adversely.
Here’s the transcript of Jayashree Kurup’s interview with TOI.
Could you talk us through the immediate impact that the Modi government’s move to withdraw two denominations will have on the real estate sector?
The real estate sector functions differently in different parts of the country. So let’s talk about North India, where you saw the largest number of cash transactions in property. What we have noticed – and what has been told to us by the industry – is that the secondary market is definitely going to face the heat. If you look across the NCR (National Capital Region) market, or, say places like Chandigarh, you saw that if you were selling a property, a large volume of that – 30, 40 per cent of that – used to be dealt in cash to save on taxes.
Even small retail buyers are quite okay with giving cash. This volume of secondary market transactions is going to face the heat for at least the next five-six months. But end-users who are looking at formal means of finance – which means mortgages – are not going to be impacted. In the South Indian markets and in a large part of the West Indian markets, except maybe parts of Mumbai, we see that the markets were much cleaner, there were much less cash transactions.
You don’t really see this as a long-term problem, you see the market stabilizing pretty soon?
I don’t see this as a problem. I see this as a correction. I think with this, Prime Minister Modi has actually brought the end-user into sharp focus. Three years ago, when we had a spate of launches in the North Indian market, the end user was the eighth transactor in that process. There used to be somebody who would take 20, 40 apartments, and they would block those apartments. When the values went up another 200-400 rupees, they would sell that off to the first level of investors. There were five, six levels of investors before the end user actually entered – because the end user cannot take the risk of delaying construction.
Now what will happen is that all those petty investors who made 200, 400, 600 or maybe 2,000 rupees on a transaction will go away. And then, even if the consumer books at the early stages, and the leverage value goes up at the end of the cycle of construction, that’s a good legitimate investor who has waited out three years, four years, and then decides to exit and then go away. That is good for the market, and I think that is what is going to happen. You’ll see serious investors and you’ll see a lot of end users becoming extremely active in the market.
It sounds like you’re saying that we’re going to be looking at a more responsible, transparent real estate market.
Absolutely. Transparency was one thing that was completely lacking in this market.
You’re going to see by April 2017, all states have to notify the norms of RERA (Real Estate (Regulation and Development) Act, 2016), and they have to start setting up RERA councils, so that it becomes a reality. That’s the first thing that was very, very positive in 2016. The other thing is the Benami Transactions Act. That struck a body blow on a lot of cash transactions. And along with that this demonetization,I think we are going to see a lot more transparency in this market.
How does one account for that transparency?
Every one of the norms that have been issued in the last one year involves people declaring their assets, the construction of the assets, the stage of construction, and where the money is coming and going. Now that’s going to bring a lot of transparency because anybody can then go online, and check on the approvals, the status of approvals, the status of construction, and sales velocity. Today, nothing is declared. As more and more declaration becomes the norm, transparency in the industry will increase.
Do you think there are specific sub-sectors within the real estate space which will be more affected than others?
Yes, I think so. Actually, the maximum impact will be felt in the premium and the luxury markets, because that’s where a lot of cash transactions used to happen. Professionals, I think, largely go for mortgages, but you’ve seen the business community dealing with a lot of cash in that segment – which is already oversupplied in the country, and not a very buoyant segment of the market.
You’re going to see that segment under threat for some more time. But on the other hand, once the market picks up a little more, I see people who have smaller units selling those units, and upgrading to the luxury market.Source: http://realty.economictimes.indiatimes.com/news/industry/currency-ban-why-this-will-make-the-real-estate-sector-more-transparent/55381747)
Source: Economic Times
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Raunak Group Launches The Second Edition of Home Buying Festival 2.0
Since 1980, Raunak Group has been a leader in providing luxurious apartments with world class amenities. Catering to the housing needs of Mumbai, Pune, Kalyan and Thane, Raunak Group have always worked for elevating the living style of its home buyers. Successfully developing various township projects over the years, with 4.9 million sq ft. of completed projects and additional 2.7 million sq ft. of ongoing developments, has made them the foremost players in the real estate game.
Inspired to redefine the fundamentals of housing, Raunak Group have always reinvented themselves for time to time. Fulfilling the ever rising demand of a perfect lifestyle, they have always enhanced and excelled their features. Whether it be timely deliveries, affordable housing, transparent relationships or the quality, it has made them an outstanding choice in the world of real estate.
Carrying on the legacy of 37 years, Raunak Group has built a name, in the real estate sector, known for their quality and timely delivery of the properties. Now they are back with their biggest discount campaign of the year, Raunak Home Buying Fest 2.0. An exciting real estate festival of Mumbai, where the buyers will find the biggest discount, ever to witness, for the region of Thane and Kalyan. This home buying festival is the celebration of giving home owners, a place of their choice. Reaching to the core needs, hence bringing out their dreams to fulfilment is the prime motto of Raunak Group.
On every booking at the Raunak home site in Thane and Kalyan, the buyers will get a chance to spin the wheel of fortune, making it a sure shot chance to win amazing prizes. Raunak Group’s Home Buying Festival is an offer that shouldn’t be missed. As for the first time, real estate sector finds discounts on a staggering level that have never been seen before.
Uniquely designed, this festival gives the buyers an opportunity to book their dream homes. The wheel of fortune provides an exciting list of prizes, there is a special discount waive-off of 3 months EMI. Surprisingly there is also a step-up to this offer, another wavier of 6 months is available on the wheel.
Special vouchers ranging from 1.25 to 2.5 lacs can also be won at a lucky spin. This discount spree gets even more exciting, as the lucky players might win 15 to 20 grams of gold at each swing. Everyone’s a winner at Raunak Home Buying Fest. Buying a home has never been so much fun!
Almost 52 Percent Of Residential Units Registered Under MahaRERA Remain Unsold: Report
According to a report, 350,000 units remain unsold out of the total number of units that were registered under MahaRERA leading to an inventory overhang of 52 percent as of August end.
The joint report from Cushman & Wakefield and Propstack said with over 50 percent of the current residential inventory remaining unsold and slow momentum of the new launches, the prices have been largely stable.
An estimated 670,339 units across 5,620 projects have been registered under MahaRERA including residential and residential cum commercial under-construction projects. These projects cover 506 million sq ft of development.
Looking at MMR in areas beyond Thane, maximum numbers of projects were launched and registrations done under MahaRERA at 1,835 projects constituting 33 percent of total projects registered.
Gautam Saraf, MD, Mumbai, Cushman & Wakefield said, “Availability of land at the lower prices is a crucial parameter that allows developers to keep the per unit prices under check. Maximum end-users are value sensitive and would like to get maximum benefits out of their purchases. Locations beyond Thane allow developers to create homes that deliver value beyond just habitat. These areas are well connected through public transport including suburban rail and roads, and give developers the confidence to launch large-scale projects in these areas”.
The stretch from Bandra to Borivali on the Western Suburb saw 1,400 projects making up 25 percent of the total registrations. The rest of the table was completed by Eastern Suburbs (18%), Navi Mumbai (12%) Thane (7%), and South Mumbai (5%).
1 and 2BHK configuration units estimated at 319,000 had the highest share of sales constituting together of 87percent. 3BHK configurations sales made up 11percent, while even higher configurations were a mere 1percent of the total inventory sold.
Due to the high real estate prices in MMR region, the end-users’ affinity has been towards smaller configurations. The report added, even while the capital values of affordable houses across most micro markets have not seen any drastic changes when compared to other cities like Bengaluru, Delhi NCR and Pune, these are higher by at least 10–15percent for comparable projects and locations.
Sandeep Reddy, Director, PropStack, India stated, “As more and more projects register for MahaRERA, the market, including end-users, will have better access to information on developers and projects. For end-users, having all information upfront will help them to assess the final product upon receipt….The data will help us create better, sharper analysis of demand as well as design future supply to help avoid demand-supply mismatches”.
While registering under MahaRERA, most builders have revised their delivery timelines. As per the report while 42percent of the projects are expected to be delivered on time, over 43percent of the projects showing delays of up to 3 years and the rest beyond 3 years.
Approximately 57 percent of the under-construction projects are delayed. 1454 projects will see completion in the year 2018, the largest volume of completion.
Also Read: RERA To Ensure Completion Of Realty Projects
Badlapur – The Right Investment Zone
Part of the district of Thane, Badlapur is one of the fastest growing areas in the MMR. Mumbai is one of the costliest cities to invest in while neighbouring areas like Thane, Badlapur, Kalyan, Navi Mumbai and others have become attractive destinations to invest in.
Badlapur constitutes of 4 small villages, i.e. Katrap, Kulgaon, Badlapur and Manjarli. There are several reasons why Badlapur is becoming the preferred choice and the most recommended option when it comes to investments and properties.
Nature lovers prefer coming to Badlapur for its scenic beauty around itself with greenery, waterfalls, hilly regions, etc. Badlapur is also a popular weekend getaway and picnic spot for the people of Mumbai. With quiet and peaceful surroundings and comparatively cooler temperatures, there is no second guess as to why the people also love to settle here.
Its proximity to Mumbai gives the people another reason to settle within Badlapur permanently. With flawless connectivity in terms of both roadways and railways, the commute is quick and smooth. The Badlapur road is connected to Thane from one side along with the Mumbai Pune Expressway at another side. The Neral-Badlapur road will trigger an exclusive transit system between Kalyan and Karjat. Some of the roadways are under development, the gateway to Khopoli being an example.
The town is divided into the Eastern and Western region as the railway line runs in between it. The nearest railway station of Kalyan serves as a junction, connecting it to many major cities across India. Badlapur lies along the central line of Mumbai suburban railways. Stations like Thane and Dadar are located within a 40 kms radius from Badlapur station.
Badlapur is about 50 kms away from the international airport and about 30 kms away from the Proposed Navi Mumbai airport. Badlapur East has excellent connectivity through NT buses as well. The smooth connectivity has played an important role in the elevating Badlapur’s real estate scenario. The Monorail has been proposed by the RDA authorities that will connect from Badlapur to Bhiwandi and Thane or Kalyan to Badlapur.
Badlapur has a well developed social infrastructure. Reputed schools and round the clock medical facilities make the town a preferred choice. It is one of the best locations that meets the criterions of a budget, proving the perfect locality, basic amenities and an evergreen environment. People are also moving to Badlapur for employment opportunities as it is home to all types of companies and banks.
Badlapur has huge land parcels and a steady pipeline of projects. Both East and West Badlapur offers affordable home options as well as properties that are well planned and well designed. With the transformation of the skyline of the town, it is sure to give opportunities for better returns in future.
One of the plush club residencies present within Badlapur is offered by Tulsi Estates. Tulsi Signature offers 2, 3, and 4BHK quality homes and has only 112 limited edition club residences. It offers a community and a lifestyle that is chic and sophisticated, yet ultimately secure and comfortable. You will find yourself part of a nurturing community; a private paradise that you will be happy to reside in. The architecture is grand and every minute detail has been taken care of. Tulsi Signature defines your taste and style in its finest masterpiece.
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