Connect with us


685 Housing Projects ‘Under Investigation’ By Karnataka RERA



Housing Projects Under Investigation By Karnataka RERA

At present Karnataka has approximately Rs 50,000 crore on stake riding on various real estate projects. The Real Estate Regulatory Authority (RERA) Karnataka has raised a question mark on the future of one lakh apartment units and an equal number of investors in the state. This is due to 685 construction projects that are unregistered with RERA Karnataka. Thus the RERA Karnataka have listed them as “under investigation”.

The Karnataka government notified the Centre’s RERA Act, 2016 in July last year. RERA Act is aimed at protecting the investor’s interest by regulating the real estate industry with a host of rules. All projects are to be registered under RERA and will get a clearance certification only after they meet the prescribed norms.

On Monday, RERA Karnataka has listed 685 realty projects in red with an alert: “The public is hereby informed that these projects are not registered with RERA and are under investigation. The public is warned that dealing with these projects is at their own risk.’’

Shrinivas Rao, CEO, Asia Pacific of Vestian Global Workspace Services does the Math. “This (685 projects) would mean at least one lakh units, at an average of Rs 50 lakh per apartment. It is a neat Rs 50,000 crore exposure for builders. A property buyer would have paid 15-30% upward during the time of booking, which means around Rs 15,000 crore has already gone into the market.’’

At least 50 percent of these projects are in Bengaluru. The realty industry is panicking as the stakes are high. There is also the factor of the construction finance exposure to banks. Many nationalized bank’s Non Performing Assets lists have real estate players as their major defaulters. This number of defaulters among them is only likely to go up.

A developer who has already submitted eight projects’ details with RERA and is still under the red list said, “We have submitted the required documents to the Authorities highlighting that these projects have received occupation certificate and hence not required to be registered under Karnataka Real Estate (Regulation and Development) Rules as per rule (4) of sub-rule (iv). We were told by authorities that they will remove our name/projects from the list in 4-5 days.’’

K Ramesh, managing partner of Arna Shelters cautioned home buyers against investing in such projects and said, “Property registrations will not be done without RERA certification and even resale of old properties won’t be easy.’’


Residential Market Prices Drop Sharply In Kolkata



Kolkata Residential Market

In the Kolkata market, the residential market prices have dropped substantially in the second half of 2017. According to a study by a real estate advisory firm, Knight Frank, during the same period, annual launches have fallen by 47 percent.

The study said that the effective prices in the organized residential projects in the city have dropped to the extent of 12 percent, which included a slash in the base prices charged by the developers, along with a waiver of other charges like stamp duties.

Samantak Das, Chief economist and national director of Knight Frank, said that the price drop is due to the sluggish market, in addition to aging inventory levels of the completed units for which the developers were going slow on new project launches. He also said that the downward price correction would be more pronounced in the coming months.

There were nearly 40,000 unsold units in the organized residential segment in Kolkata in 2017. The yearly sales had fallen more in 2017 as compared to the previous year when the demonetization was announced. The report also suggested, since West Bengal was yet to adopt RERA and establish the Housing Industry Regulatory Authority (HIRA), the developers were adopting a ‘wait and watch’ approach.

The report added that nationwide along with cities like Pune, Bengaluru, and Chennai, Hyderabad witnessed the steepest fall in new project launches.

Continue Reading


All Delayed Projects Sees A Deadline Of March 31st In Tamil Nadu



Smart City Projects

In a recent report submitted to the Rajya Sabha, the Union Ministry of Housing and Urban Affairs, noted that Tamil Nadu was faring poorly in spending the funds for the Smart Cities Projects. The spending amounted to less than 1% of the funds sanctioned, also the state’s own allocation of Rs 200 crore has not been touched at all. Following it, a meeting was held by the Municipal administration and water supply minister S P Velumani.

In which he set a deadline for local bodies in Tamil Nadu to begin work on delayed and pending proposals, under the smart cities project by March 31st. A funding of Rs 196 crore was sanctioned for this mission in 12 cities of Tamil Nadu. Which comes under the Union government’s mission to develop 100 citizen-friendly and sustainable cities all over the country.

The minister has also said that the state government has asked the central government to relax the norms for various projects, especially for the water and sanitation related projects. But according to the reports, these projects would be sped up regardless of the central government’s response.

A review meeting with bureaucrats was chaired by the minister, at the Chennai Metrowater headquarters in Chintadripet. The minutes, of the meeting, revealed the discussion about the status of smart city and Atal Mission for Rejuvenation and Urban Transformation (AMRUT) proposals. Corporation issued a statement, that 12 municipal corporations had altogether received clearance from the Centre to execute 173 proposals, worth Rs 13,425.65 crore under smart cities project.

The AMRUT (Atal Mission for Rejuvenation and Urban Transformation) sanctions funds for drinking water, park maintenance and sewerage projects. Out of the 428 projects, 83 park-related projects have reached the completion. When other states have special agencies with the decision-making authority for the implementation of the Smart Cities Projects. In Tamil Nadu, the respective agencies don’t hold that much power, and must seek approval from a “higher committee”.

Three tenders worth Rs 3.65 crore have seen completion, out of the 173 proposals. Another 14 proposals worth Rs 491.97 crore have gone under the construction. Next 37 proposals are seeing the calling of the respective tenders worth Rs 1,795.92 crore. Detailed project reports (DPR) are being made for the last 19 proposals worth Rs 11,134.12 crore.

Local body officials were instructed that the bids inviting for proposals will see a deadline of January 31st. Projects with the DPRs are supposed to get ready for the tenders by the March 31st. Minister emphasised on a priority for drinking water and sewerage schemes, roads and storm water drains.

There are 18 drinking water projects (Rs 6,508.73 crore), 392 park projects (Rs 222.67 crore) and 18 sewerage line projects (Rs 4,757.60 crore) under the AMRUT scheme. Overall these Centre sanctioned projects, in 33 cities of Tamil Nadu, are worth Rs 11,489 crore. 83 park maintenance projects, worth Rs 44.92 crore have already been completed, out of the total 428 projects sanctioned under AMRUT. Whereas the remaining projects are under various stages of execution

Continue Reading


NRI Investing Trends: Hometown Outshines The Metros



NRI Investments

Non-resident Indians (NRIs) have always endeavoured to optimize returns on their investment avenues ever since India commenced on the path of economic liberalization. Despite of the status of the market, NRIs always wanted a place back at home. Understanding this need, real estate sector began to cater to this emerging market, hence becoming the most prominent and high return sector by attracting big investments.

The current market is seeing a new trend, 78 percent of NRIs who are looking to invest in real estate in the country, now wish to do so in their hometown. The main reason being the sense of security that NRIs finds in these kind of investments. As the hometowns are considered as investor friendly with a promising future growth.

The hometowns have now taken the preferences from metro cities like Mumbai and Bengaluru. These metro cities may have been the choice of average salaried-class individuals, but no longer for NRIs. As a large share of expat Indians sees their hometown as the top choice above other investment destinations.

Around 82 percent of NRIs have made up their mind that they would regardless put resources into the place where they grew up, despite of the varying circumstances in different urban areas, as it gives them a feeling that all is well with the world.

Those who are planning to come back and settle in India, are also preferring to invest in their hometown only. Near about 70% of the NRIs are even ready to take up a relatively lesser paying job in their hometown, instead of going for a job with higher salary in the metropolitan cities. They are preferring a quality life over the high costed and stressed life in cities. Then there are retiring professionals, who contribute majorly to the home sick category. 90 percent of these are willing to buy a house in the hometown only, denying the risk of living a lonely life among strangers.

According to a survey by the land think-tank amass Track2Realty and its worldwide cooperation accomplices, taking the participation from the NRIs around the world. A choice among the open-finished and close-finished inquiries in the Indian property advertise, NRIs showed a strong inclination towards the property in India, even though they may not plan to live here. They are likely to have greater trust in their ability to make profits in real estate in India.

The other reasons are the strengthening of the US Dollar against the Indian Rupee. Which has raises the affordability of Indian homes. Similar pattern is occurring with the value of currencies in the Middle East. As the property in India goes cheaper to NRIs, they are likely to invest more.

Today’s NRIs want to settle back at home, with friends and relatives. Therefore, opting for a property in a metropolitan city would be continuing the immigrant scenario, even in their own country. This spending in the home town is more of a self-funding personal experience for them instead of an investment.

NRIs are also keeping in mind the comfort and lifestyle that a smaller city can offer, adding the lesser uncertainties and lower investment for business. These hometowns are becoming an ideal choice, promising an ideal growth in the coming years.

Continue Reading