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Indiabulls Real Estate, Lodha Readying London Projects

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Indiabulls Real Estate, Lodha readying London projects

In May, Lodha will formally launch its Grosvenor Square project in London; Indiabulls Real Estate launched its project Hanover Bond in March

Real estate firms Indiabulls Real Estate Ltd (IBREL) and Lodha Developers Pvt. Ltd are in the process of launching projects in London, after they bought prime properties overseas during 2013-14.

After a lull in the London property market in 2016, mainly due to uncertainty over Brexit, prices and sales seem to have stabilized now, coupled with a weak pound that has made home purchases attractive for foreign buyers as well, recent research reports said.

In May, Lodha will formally launch its Grosvenor Square project in London, once the show flat is ready. The Mumbai-based developer had bought the iconic MacDonald House property from the Canadian government for over £300 million in 2013 .

A spokesperson for Lodha said that the company has already done select pre-launch sales at over £6,000 per sq. ft (Rs5 lakh per sq. ft), one of the highest prices that any project with an Indian connection has ever achieved. Construction has also started.

Indiabulls Real Estate launched its project Hanover Bond—a collection of 80 apartments and a five-star hotel—in March, and opened bookings for customers.

The developer bought the property in London’s Mayfair in 2014 for around Rs1,550 crore at an acquisition cost of an estimated Rs1.65 lakh per sq. ft. The project has apartments and penthouses at different sizes and price points. A 400 sq. ft studio is at a starting price of £1.95 million and goes up to around £6 million for a three-bed home. Prices of the penthouses are disclosed on application.

“We launched the project for people to come and see. We are now in discussions with hotel operators and will finalize one for the five-star hotel in the property,” said Vishal Damani, joint managing director, Indiabulls Real Estate.

Most of these properties in London were bought by the developers a few years back in a bid to diversify their project portfolios and reduce dependence on the home market.

Indiabulls Real Estate, for instance, had earlier planned to steadily build a portfolio of projects in London but did not announce anything new after the Mayfair project.

Lodha has a second project at Lincoln Square in London, which it bought in early 2014 and launched last year. The project has done exceptional sales of over £115 million (Rs1,000 crore) in nine months, despite Brexit, the Lodha spokesperson said.

Construction started last year and the project is expected to finish by end-2018.

Analysts however said that given the uncertainty in the domestic property market, it’s unlikely that Indian developers will again go shopping overseas to buy assets anytime soon.

“Though the Brexit-related uncertainties seem to be over, we don’t see developers venturing into overseas markets. Real estate is a regional business and realty firms will focus on core markets. It’s not easy to clock property sales in any market, so in a foreign market, one has to work even harder,” said Ashwinder Raj Singh, chief executive officer, residential services at property advisory JLL India. “For those who had bought these properties, this may be a good time to launch those projects.”

Source: Livemint

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Ahmedabad Real Estate News

Under Construction Flat Booking Finds Tax Deduction Under Time Constraints

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Tax Deduction

If a buyer makes a transaction to book an under-construction flat and if he acquires it within the three-year period of the sale of his old house, then he is entitled to a tax deduction, says a ruling from the Mumbai bench of the Income-tax Appellate Tribunal (ITAT). If an apartment is booked in an under construction project than it must be viewed as a method of constructing residential tenements, says the December 18 judgment.

That means if the buyer uses the entire gain from the transaction to buy another house within two years or construct another house within three years. The two- and three-year period applies even if the buyer bought another house a year before selling the first one. But the property should have been bought in the name of the seller.

It is mandatory that within a period of two years after or one year before the date of transfer of old house, the taxpayer should construct a residential house or acquire another residential house within a period of three years from the date of transfer of the old house. The date of receipt of compensation will determine the period of acquisition or construction in a case of compulsory acquisition.

This exemption is effective and can only be claimed in respect of one residential house property purchased/constructed in India. In the case of multiple house purchases or constructions, the exemption under section 54 will be available in respect of one house only. Any purchases made outside the country does not fall under any kind of exemption. Section 54 gives relaxation in such cases by providing relief to the taxpayer who sells his residential house and acquires another residential house from the gained capital.

After the sale of an asset, the difference between the buying price and the selling price is a capital gain or a capital loss. These are further classified as long-term or short-term. If a property is held for 24 months or less, with effective from 2017-18, then that asset is treated as Short Term Capital Asset. Then an investor can make

treated as Long Term Capital Asset. Then only a Long Term Capital Gain (LTCG) or Long Term Capital Loss (LTCL) can be made on that investment.

ITAT agreed that booking of a new flat in an under-construction apartment should be considered as a case of “construction” and not “purchase”, hence following the earlier decisions of the Bombay high court and the tribunal itself. Further ITAT allowed the fact that the construction can began prior to the date of sale of the old asset. Same was stated in the earlier judicial decisions of the Karnataka high court and Ahmedabad ITAT, that the date of commencement is not relevant but it is the completion of construction that comes in relevance to section 54.

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India Real Estate News

HDFC and Quikr Make A Deal

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HDFC and Quikr Make A Deal

According to a deal between HDFC and Quikr, a stake of more than 3 percent will be given to the mortgage giant in return to its transfer of offline and online real estate brokerage business to the classified ads platform.

After acquiring Commonfloor in 2016 Quikr already has a major presence in online real estate broking.

“Most of the searches for real estate are moving online. Quikr has a much bigger presence online. Through this deal, we are partnering Quikr in the broking business,” said HDFC MD Renu Sud Karnad. According to her, this deal will strengthen Quirks position with offline support.

The deal suggests that HDFC will transfer to Quikr its entire shareholding in HDFC Realty, a real estate brokerage platform, and HDFC Developers, which runs the HDFC RED online platform.

Karnad added that the deal expects Quikr to generate home loan leads for HDFC. The transaction consists of a co-branded alliance between both parties and the HDFC brand will continue to be used online for a year.

The e-real estate classifieds platform HDFC RED has around 7,000 project listings and generates traffic of over 80,000 unique visitors per month. HDFC Realty has a 300-member, in-house sales team, and 7,000-strong nationwide broker network. Avendus Capital was the exclusive financial adviser to Quikr while Kotak Investment Banking acted as the exclusive financial adviser to HDFC on this.

30 million monthly users make Quikr India’s largest classifieds platform. It runs multiple vertical businesses across real estate, automobiles, jobs, services, and goods. The Quikr Home, its real estate vertical generates 3.5 million monthly unique visitors.

Both companies intend to work closely and conduct analytics and identify potential homebuyers, and therefore home loan customers, early in their home-buying journey. Quikr founder and CEO Pranay Chulet said, “We see great synergies between Quikr and HDFC as we start working together to bring a seamless online-to-offline platform to developers and consumers.”

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India Real Estate News

Retaining The Sustainability: GRIHA Launches Star Rating For Urban Homes

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GRIHA Launches Star Rating For Urban Homes

Green Rating for Integrated Habitat Assessment (GRIHA), is the National Rating System of India, a Sanskrit word meaning – ‘Abode’. Human architecture has always consumed resources in the form of energy, water and material from the environment. From their construction to operation, these habitats absorb the resources throughout their life cycles, emitting wastes in the end. This emission could be direct in the form of municipal wastes or indirect emission into the atmosphere, such as from electricity generation. Hence GRIHA was formed to reduce an architecture’s resource consumption, waste production and overall environment impact up to certain national acceptable limits.

In attempt to quantify all these aspects, like energy consumption, waste generation etc. GRIHA tries to manage, control and bring down the respective to the best possible limit. Being a rating tool, it helps people to assess the performance of their respective projects against the national benchmarks.

Hence it becomes an evaluation of the environmental performance of an architecture on a holistic level. Covering its entire life cycle, this evaluation provides a specific standard for a ‘green building’. This rating system aims to strike a balance between established institutions and emerging concepts, on a national as well as the international level.

The process starts with an online submission of documents according to the criteria. Then a team of professionals and experts from GRIHA Secretariat takes a site visit for the evaluation of the building.  There are four different sections categorized by 34 criteria in GRIHA rating system. Some of them are site selection and site planning, conservation and efficient utilization of resources, building operation and maintenance, and innovation. 

Sanjay Seth, CEO, Green Rating for Integrated Habitat Assessment (GRIHA) Council says, “A rating between one and five stars is being provided, helping the costumers to know about the sustainability of the houses”.

According to the Union Minister, Hardeep Singh Puri, the climate resilient and sustainable buildings are the need of the hour. As the government is aiming to construct around 1.2 crore houses for the urban poor under the affordable housing scheme.

In one of his keynote addresses, Andreas Baum, Ambassador of Switzerland to India and Bhutan said that the Indo Swiss collaboration is operating with the Indian Bureau of Energy Efficiency in the development of guidelines for energy efficient housing.

“At present India is witnessing a rapid urbanisation, if each building becomes greener than the last one, then we have a huge opportunity and hope for our country. We need to look beyond the conventional methods of building, in order to provide our citizens with a good quality of life. Hence, GRIHA gains important in meeting our national goals with respect to a sustainable society”, says Dr Ajay Mathur, director general, TERI & president, GRIHA Council.

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