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10-Oct-2019 25-Nov-2019
CREDAI Bengal Daily News Update | 25.11.19
Despite slowdown, housing sales see steady growth in tier-II cities
Government's push for affordable housing is ensuring tier-II cities are having a
larger piece of the housing sales, says real estate advisory firm Liases Foras
Smaller towns and cities offer a 'more conducive land' to develop low cost housing,
says Liases Foras MD
Amid the slump in residential sales across India, particularly in the metros, housing demand
in smaller towns and cities have seen a steady growth in the last five years driven by the
government's push for affordable housing.
Share of over 20 tier-II cities, including Jaipur, Vadodara, Nashik and Nagpur, in the total
housing sales has increased to 25% till the end of last financial year 2018-2019 as compared
to 16% five years ago, according to data compiled by real estate advisory firm Liases Foras.
In the second quarter of this fiscal year, these smaller cities accounted 26% to the overall
sales, a marginal jump from 25% recorded in the year-ago period.
However, overall housing sales across the country including major cities like Mumbai
Metropolitan Region (MMR), Delhi-National Capital Region (NCR), Bengaluru, Chennai,
Hyderabad and Pune declined by 2% to 91,115 units in the September quarter, as per Liases
Foras.
"If you look from 2014, sales of tier-II cities have jumped by 112% while tier-I cities have
grown by 28%. Contribution of these smaller cities to the overall housing market is
increasing. The push for affordable housing is driving this growth," said Pankaj Kapoor,
manager director, Liases Foras.
Apart from the government's initiatives like Pradhan Mantri Awas Yojana (PMAY), which
has helped push demand in the affordable housing segment to certain extent, smaller towns
and cities offer a "more conducive land" to develop low cost housing, Kapoor said.
While most of the cities in the country saw a decline in housing sales in the September
quarter, few cities such as Jaipur, Nashik and Ahmedabad saw a jump of 22%, 25% and 4%
respectively during the period.
Newspaper/Online Live Mint(online)
Date November 24, 2019
Link https://www.livemint.com/industry/infrastructure/despite-slowdown-housing-sales-see-steady-growth-in-tier-ii-cities-11574615290051.html
Real estate developers and consultants said that while big cities and metros are seeing a
huge supply overhang, smaller towns and cities have been less affected by any speculative
activities or downturn in the past.
"While the growth in the smaller cities is nothing prominent as of now, these places were
less affected by the bubble which were there in the market. Some of these cities have
remained very stable and have not been affected by the downturn.Thats why these cities are
showing a relatively healthier position," said Sourabh Mehrotra, national director, Knight
FrankFrank, a property consultant firm.
According to him, lower land prices have helped developers execute low housing projects in
smaller towns as they are able to bring down the capital cost by as much as 25-30%.
"The mega affordable projects like 7-10 lakh have come up in smaller towns. Reasonable
land prices along with government's subsidies have helped local developers to build low
cost housing projects such places," Mehrotra said.
However, developers feel that growth in last five years in tier-II cities is only "a green
shoot" as job markets expand beyond the metros but would take few more years to similar
demand in the major cities like Mumbai and NCR.
"Many smaller cities in India are likely to see incremental development because of the kind
of thrust that the government is giving on creating smart cities. But it is a long term story.
However, some of the smaller cities in south like Mangalore or Kochi have seen significant
changes in the last few years. More jobs and development will lead to offtake of residential
housing in these cities," said a spokesperson with property developer Puravankara Ltd. The
Bengaluru-based has ongoing affordable housing projects under the brand Provident in
cities like Kochi, Coimbatore and Mangalore apart from others.
____________________________________________________________________
Home sales in Jaipur up by 22%: Report
But as per the report by Liases Foras, an independent non-broking real estate research
company, the beaten down sector in Jaipur is not out of woods.
Home sales have shot up by 22% in Jaipur in the quarter ended September compared to same
period last year. According to the findings of a report tracking 35 top cities in the
country, residential property sales have risen in 15 cities with Jaipur witnessing second highest
rate of growth after Nashik at 25%.
But as per the report by Liases Foras, an independent non-broking real estate research company,
the beaten down sector in Jaipur is not out of woods. Its unsold stock continues to be one of the
highest in the country.
An efficient market maintains 8-12 months of inventory. It represents the number of months
required for the stock in the market to be absorbed according to the existing demand. In case of
Jaipur, the inventory level stands at 56 months in the said quarter, dropping marginally from 58
months (5%) in the same period last year.
Chennai is the only city covered in the city where the overhang is higher than Jaipur at 76
months.
Newspaper/Online ET Realty(online)
Date November 23, 2019
Link https://realty.economictimes.indiatimes.com/news/residential/home-sales-in-jaipur-up-by-22-report/72193283
It appears that despite the sales growth of 22%, the inventory level has not come down, rather
the unsold houses have risen by 17%. It indicates that along with the high sales growth, new
supply has come into the market.
Anand Mishra, president CII-Rajasthan, also director of a real estate company, said, "It clearly
shows that both demand for houses and new supply in the market has expanded which is a good
sign."
Majority of the new projects has come in the affordable category. But stakeholders in the
industry said that these projects have also added to the glut and demand has not kept pace with
supply. But there is a revival in demand for houses in the price range between Rs 40-75 lakh.
Sanjeev Rawat, senior official of a real estate company said, "We are witnessing revival of
demand for houses in the price range of Rs 40-75 lakh. There is an oversupply situation in the
affordable segment while projects above Rs 80 lakhs are struggling."
Some in the real estate industry in the state pointed out that despite the sales rising and months
inventory coming down, the survey finds that the number of unsold units have gone up by 17%
which appears to be at variance. Tanvi Goyal, head - client engagement, Liases Foras, said,
"Jaipur has witnessed an upsurge of both demand as well as supply in the past few quarters.
Sales witnessed a 22% growth in September quarter as compared to same period last year while
unsold increased by 17%. Months inventory dropped marginally to 56 months due to higher
growth in sales."
________________________________________________________________________________________________
Residents of Delhi's illegal colony can apply for ownership from
December 16
The Union Cabinet had on Wednesday approved a bill which provides a legal framework
to grant ownership rights to the people living in unauthorised colonies in the city, a move
that will benefit 40 to 50 lakh people.
Residents of unauthorised colonies in the national capital will be able to apply for ownership
rights starting December 16, Union Housing and Urban Affairs Minister Hardeep Singh
Puri said on Saturday.
The applicants will get the ownership certificate within 180 days from the date of application,
the minister said at the launch of a portal which will 'define and delineate' the boundaries of
1,731 unauthorised colonies here using satellite imagery.
The Union Cabinet had on Wednesday approved a bill which provides a legal framework to
grant ownership rights to the people living in unauthorised colonies in the city, a move that will
benefit 40 to 50 lakh people.
The decision is politically significant as it will benefit millions of poor migrants who hold key
to the assembly election due early next year and had backed the Aam Aadmi Party in large
numbers in the 2015 Delhi polls.
Inaugurating the website developed by the Delhi Development Authority (DDA), Puri said:
"What the Delhi government couldn't do in 11 years, we have done that in just three months".
Accusing the Arvind Kejriwal government of delaying the process of delineation of
unauthorised colonies on various pretexts, Puri said, "Obstructionist and irresponsible attitude
of the Delhi government is evident on every issue pertaining to the welfare of the people.
"We want the resident welfare associations to look at the boundaries delineated using satellite
imagery and convey their suggestions and objections within 15 days". The Union minister said
that another website will be launched for residents to apply for ownership rights starting
December 16.
The applicants will have to register and upload the required documents -- general power of
attorney, payment receipt, possession letter, etc -- on the website, DDA Vice Chairman Tarun
Kapoor said.
"Thereafter, a team of DDA will visit the spot for verification. The officials will help the
applicants remove deficiencies, in case there are any," he said.
Newspaper/Online ET Realty(online)
Date November 24, 2019
Link https://realty.economictimes.indiatimes.com/news/residential/residents-of-delhis-illegal-colony-can-apply-for-ownership-from-december-16/72205741
Kapoor said DDA will start operating helpline centres at its local offices from December 1 to
make the process smooth.
In a bid to remove legal hurdles in granting ownership in unauthorised colonies, the lieutenant
governor has already declared 79 villages as 'urban areas'. Ongoing cases pertaining to change
of land use will also be withdrawn soon, he said.
________________________________________________________________________________________________
Website launched to delineate boundaries of unauthorised colonies
in Delhi
Housing minister Hardeep Singh Puri said that another portal will be launched for
residents to apply for ownership rights.
Union housing and urban affairs minister Hardeep Singh Puri on Saturday inaugurated a portal
which 'defines and delineates' the boundaries of unauthorised colonies in the national capital.
Inaugurating the website developed by the Delhi Development Authority (DDA), Puri said:
"What the Delhi government couldn't do in 11 years, we have done that in just three months".
He said that another portal will be launched for residents to apply for ownership rights.
________________________________________________________________________________________________
Newspaper/Online ET Realty(online)
Date November 24, 2019
Link https://realty.economictimes.indiatimes.com/news/technology/website-launched-to-delineate-boundaries-of-unauthorised-colonies-in-delhi/72205942
Violations led to Lulu project cancellation: Andhra Pradesh
tourism minister
The minister, who held a review meeting with GVMC officials on sanitation, seasonal
diseases and town planning, alleged that the most expensive land pocket in the heart of the
city was given to Lulu group at throwaway price.
Tourism minister M Srinivasa Rao on Friday claimed there were several violations in the land
allocation as well as bidding process for the proposed mega convention centre in the city
by Lulu group.
The minister, who held a review meeting with GVMC officials on sanitation, seasonal diseases
and town planning, alleged that the most expensive land pocket in the heart of the city was
given to Lulu group at throwaway price.
―Moreover, the convention centre on beach road, which already witnesses huge crowds during
weekends, is not a suitable location for the project. The government cancelled the MoU taking
all these factors into consideration, not because of differences with N Chandrababu Naidu,‖ he
said.
Srinivasa Rao further said there is a clear drop in the number of vector-borne diseases within
GVMC limits as compared to last year.
―While the city registered about 1,464 dengue cases last year, it is about 679 cases this year.
The number of malaria cases this year is only 83 compared to 416 in 2018,‖ he observed.
The minister also set Dec 10 as deadline for GVMC officials to repair damaged roads in the
city. He also asked them to make the bus rapid transit system project operational in the next
one-two months. ―Several educational institutions operate out of commercial complexes. The
GVMC should launch a special drive to identify such institutions, which pose a threat to safety
of students during fire mishaps and other disasters,‖ he said.
______________________________________________________________________________________________
Newspaper/Online ET Realty(online)
Date November 24, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/violations-led-to-lulu-project-cancellation-andhra-pradesh-tourism-minister/72195494
Realty sector shows revival signs: Ravindra Pandey, CGM, SBI
He said the demand for residential units in the premium segment is clearly visible but we
would like to wait and see if this is holding on to emerge as a turning point of an uptrend.
The real estate sector has shown signs of revival in the past few months, leading to an optimism
that the slowdown has bottomed out and a recovery is underway, said Ravindra Pandey, chief
general manager of SBI, Jaipur after inaugurating the ―Times Top Brands Real Estate Expo‖ at
The Marriott Hotel Jaipur on Saturday.
He said the demand for residential units in the premium segment is clearly visible but we would
like to wait and see if this is holding on to emerge as a turning point of an uptrend.
The two-day expo, organised in association with SBI, began on Saturday. Most of the leading
real estate companies are showcasing a wide range of properties to meet needs of various class
of buyers. Additionally, SBI has put up a loan mela to help buyers with financing needs.
Many of the builders participating in the expo said that the market is now driven by real end-
users.
―Any upmove starts with end-users which we are witnessing now. If the trend sustains, then it
will attract investors. Let's hope the nascent recovery gathers momentum and tracks a broad-
based growth trajectory,‖ said an exhibitor.
SBI CGM Pandey said that the Centre has announced several stimulus measures to generate
demand for real estate and we are optimistic that they will have an impact in changing the
direction of the market for the better.
________________________________________________________________________________________________
Newspaper/Online ET Realty(online)
Date November 24, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/realty-sector-shows-revival-signs-ravindra-pandey-cgm-sbi/72205800
Home First Finance plans IPO to raise up to Rs 1,500 crore
Axis Capital, Credit Suisse, ICICI Securities and Kotak Mahindra have been appointed
by the company for the share sale.
Home First Finance Co (HFFC), a mortgage financier backed by True North and Singapore’s
sovereign wealth fund GIC, is looking to list shares locally in an initial public offering that
seeks to raise up to Rs 1,500 crore.
The draft red herring prospectus (DRHP) for the share sale at the home financier, backed by the
bulgebracket global funds, could be filed as early as next week, three people familiar with the
plan said.
Axis Capital, Credit Suisse, ICICI Securities and Kotak Mahindra have been appointed by the
company for the share sale.
The IPO will be a mix of capital raising and an offer for sale, allowing True North and GIC
along with Bessemer Venture Partners to partially exit their respective investments in the
company.
True North (44 per cent), GIC (30 per cent) and Bessemer (16 per cent) together hold 90 per
cent stake in the company and may sell some part of their shares depending on the valuations on
offer, these people said.
The company, founded by former Citibankers Jaithirth Rao and P S Jayakumar in 2010, is a
mortgage financier in the affordable housing segment. It has a loan book of Rs 3,200 crore as of
September with loan ticket size averaging Rs 10.4 lakh. Jayakumar owns 5 per cent stake in the
company.
HFFC has been growing at a compounded annual growth rate of 50 per cent in the last four
years and needs continuous capital infusion to maintain the pace of growth.
―They are growing very fast and using up capital pretty quickly. In fact, they raised some
capital earlier this fiscal as well but at the pace they are growing, they are doubling their book
every year which means that to increase leverage to continue growing, they need capital," said
one of the people cited above.
The company's capital adequacy currently stands at 48 per cent after the private equity
companies infused a total of Rs 328 crore in the first two quarters of the fiscal.
Chief executive Manoj Vishwanathan acknowledged that the company is looking to go public
Newspaper/Online ET Realty(online)
Date November 25, 2019
Link https://realty.economictimes.indiatimes.com/news/allied-industries/home-first-finance-plans-ipo-to-raise-up-to-rs-1500-crore/72215877
but declined to divulge details.
"Some plans are there. Discussions are going on...we are working toward it. Going public has
its own advantages. The company will be well scrutinised and in the public eye and people have
that much more confidence in the company – be they customers, rating agencies or lenders,‖
Vishwanathan said.
―Secondly, we anyway have to raise capital because we will reach a Rs 5,500-crore loan book
in one year and at that level, we will need at least Rs 1,200 crore to Rs 1,400 crore capital and
we are at Rs 880 crore of capital; so we need Rs 300 to Rs 400 crore of capital anyway."
Bankers are still working out the details on the amount of capital that will come into the
company and the number of shares to be offered by the private equity funds. However, they are
confident that the company will be able to attract investors because of its strong growth and
solid asset quality.
HFFC's gross NPAs at the end of September 2019 were at 0.86 per cent of its loan book,
slightly up from the 0.66 per cent reported a year earlier. Loans to builders, a major pain point
for the industry, are also at only Rs 80 crore. However, the company's small size and low rating
at A+ have meant that its cost of funds has increased since the IL&FS crisis.
Vishwanathan said one reason for the capital raising was also that the company wants to keep
liquidity handy in the current challenging environment.
―We will be close to a Rs 4,000 crore loan book by March and at Rs 880 crore of capital with
almost four times leverage. Historically you could do seven to eight times but in the current
environment, people are not comfortable with more than five times leverage at our size and
rating. Banks will see how you are leveraged. By the middle of next year, we will be at five
times leverage with the current capital,‖ Vishwanathan said.
________________________________________________________________________________________________
Companies renewing office leases ahead of expiry to cap costs
This office space precommitment activity is primarily being driven by technology and
banking, financial services and insurance (BFSI) firms, said Gautam Saraf, managing
director, Mumbai, Cushman & Wakefield.
Robust demand for Indian commercial real estate and rising rentals are pushing companies to
renew lease deals ahead of expiry, as they seek to future-proof their businesses against cost
escalation, according to a real estate advisory firm.
This office space precommitment activity is primarily being driven by technology and banking,
financial services and insurance (BFSI) firms, said Gautam Saraf, managing director, Mumbai,
Cushman & Wakefield.
―Falling vacancy levels and rising rentals due to healthy demand for commercial real
estate across key markets are prompting occupiers to act and enter agreements for their future
space requirement,‖ Saraf told ET. ―It’s a win-win scenario for both occupiers and the project
developers, ensuring good space take-up and cost efficiency.‖
Occupancy levels in Indian commercial real estate have been rising over the last few years on
demand from new players in ecommerce, healthcare and technology, apart from existing
demand from the BFSI sector. Data shows that leasing in the first three quarters of 2019 has
inched closer to the full-year performance level of 2018.
Office space takeup is expected to be at an all-time high this year — driven by tech corporates
that account for about a third of the leasing activity—against the peak of 49 million sq ft last
year.
A recent instance of a high-value pre-commitment deal is global investment bank Morgan
Stanley entering into an agreement to lease nearly 800,000 sq ft of commercial space in Oberoi
Realty’s under-construction Commerz project in the Goregaon suburb of Mumbai.
Also this year, in one of the biggest office space transactions, US multinational investment bank
and financial services company Bank of America’s offshore delivery arm picked up nearly
500,000 sq ft of office space in DLF and GIC’s commercial complex DLF Cyber Park in
Gurgaon on a long-term lease. This deal was also sealed when the complex was under-
construction and nearing completion.
―With 11 million sq ft in DLF Downtown Gurgaon, with the 7 million sq ft in Taramani in
Chennai, we are well positioned to preleasing spaces across geographies. The testament to this
is near 100% preleasing in DLF Cyber Park in Gurgaon and the four blocks of about 1.6 million
Newspaper/Online ET Realty(online)
Date November 25, 2019
Link https://realty.economictimes.indiatimes.com/news/commercial/companies-renewing-office-leases-ahead-of-expiry-to-cap-costs/72215830
sq ft sf completed recently in DLF Cybercity, Chennai,‖ said Sriram Khattar, managing
director, DLF Rental Business.
―Preleasing has taken place to large marquee multinationals. In fact, the 2.5 million sq ft DLF
Cyber Park in Gurgaon is fully preleased to about a dozen high-quality multinationals.‖
In Bengaluru, precommitments formed 40.2% of commercial deals so far this year, as against
36.5% in the full year 2018.
In Delhi-NCR, too, such deals have risen to 26.8% so far in 2019 as against 12.3% in 2018,
according to Cushman & Wakefield data. Pre-leasing activity touched 5.9 million sq ft in the
first half of 2019, almost twice the pre-leasing numbers in the corresponding year-ago period.
Healthcare products maker Abbott India also picked up an under-construction building with
over 160,000 sq ft of built-up area in Mumbai’s Andheri to set up an innovation and
development centre.
Several companies are also renewing leases much ahead of expiries to get the benefit of locking
rentals at a lower level.
Japanese financial services major Nomura Holdings has entered into an agreement with
Brookfield Asset Management for renewal of its lease for the over 450,000-sq ft office space it
occupies in Winchester commercial tower in Mumbai two years ahead of its expiry. The lease
was due for expiry in 2021, but Nomura has reset it for 10 years. Nomura will be paying rentals
of Rs 135 per sq ft a month for the office space with effect from 2021.
According to developers, IT/ ITeS, ecommerce and new-age companies are looking to expand
in good micro-locations in safe, compliant and sustainable projects of developers who are ready
to walk the extra mile to ensure higher employee satisfaction and efficiency.
________________________________________________________________________________________________
CPPIB, Mitsui Fudosan plans to invest Rs 3,000 crore in RMZ
office parks
RMZ is looking to bundle this office portfolio into a separate SPV and the deal, if it
fructifies, will be a major fillip to the Bengaluru-based company’s target of doubling its
office portfolio to over 75 million sqft in the next five years.
Japan’s Mitsui and Canadian Pension Plan Investment Board (CPPIB) are in advanced
discussions to invest about Rs 3,000 crore in a few upcoming office portfolios
of commercial developer RMZ Corp, people familiar with the matter said.
Mitsui, whose investment will be made through its real estate arm Mitsui Fudosan, and CPPIB
are looking to pick up equity stake of about 12.5% each in the near 12-million sq ft portfolio
which is spread across Bengaluru, Chennai and Hyderabad. Both the companies are looking to
invest similar amounts — in the range of Rs 1,200-1,500 crore.
RMZ is looking to bundle this office portfolio into a separate SPV and the deal, if it fructifies,
will be a major fillip to the Bengaluru-based company’s target of doubling its office portfolio to
over 75 million sqft in the next five years. RMZ has 15 million sqft of projects under
development across the country and 16 million sqft of completed projects generating rental
income of Rs 1,200 crore annually.
―At this time there is no confirmed deal of this nature to report,‖ RMZ said in an emailed
statement. CPPIB declined to comment, while Mitsui Fudosan said it could not immediately
respond.
________________________________________________________________
Newspaper/Online ET Realty(online)
Date November 25, 2019
Link https://realty.economictimes.indiatimes.com/news/commercial/cppib-mitsui-fudosan-plans-to-invest-rs-3000-crore-in-rmz-office-parks/72215715
Maradu municipality selects four agencies for debris removal
The municipality had received around 10 EoIs from various agencies before the last date
(November 6).
Maradu municipality has selected four agencies for removal of debris from the four illegal
buildings situated within the limits of the local body. The buildings will be demolished on
January 11 and 12.
The municipality had received around 10 EoIs from various agencies before the last date
(November 6). One of the major criteria for selecting the agency was that it should have 50
vehicles to transport the debris from the site. It has been learnt that the agencies either own or
have the capacity to hire 50 vehicles. The other key factor was that the agencies should have dry
land to dump the waste.
―The four agencies meet the criteria (land and vehicles). We can reveal their names only after
bidders submit the financial bid. The agencies have submitted us the details of dry land where
they plan to dump waste. In order to ensure that the agencies do not dump the waste in
waterbodies, the municipality will reach an agreement with them. As per the details submitted
by these agencies, the debris will be dumped on dry land situated within and outside city
limits,‖ said an official with the local body. A decision on the financial bid is expected at a
technical committee meeting on Saturday.
Meanwhile, pollution control board (PCB) will install an ambient air quality monitoring
machine 24 hours before the demolition. It will assess the pollution level after the flats are
demolished. However, PCB said the equipment requires uninterrupted power connection.
The equipment can be installed 200 m away from the buildings since filter papers and other
systems in it need to be changed at certain intervals. ―The equipment can be placed on 3 m high
structure. We need to ensure that it gets uninterrupted power supply. One of the neighbours
should allow us to install this in his/her house compound. If KSEB disconnects power supply
during demolition, we will not get information of pollution at that time,‖ said a PCB official.
Meanwhile, municipality officials suspended demolition of the swimming pool in Alfa Serene
using machines as a crack developed on the external staircase of a neighbouring house.
―We feel that the vibration caused during demolition of the swimming pool led to a crack on the
staircase in the neighbouring house located just 3m away from the building. We will demolish
Newspaper/Online ET Realty(online)
Date November 25, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/maradu-municipality-selects-four-agencies-for-debris-removal/72195723
the rest of the pool manually,‖ said a local body official.
Coimbatore-based Vijay Steels and Explosives, which will demolish Alfa Serene, is doing this
work.
________________________________________________________________
Chennai: About 62% assessees paid increased property tax
Greater Chennai Corporation data shows at least 10% more assessees have paid taxes in
the first half of this year compared to the same period in the last fiscal.
Chennaiites may have been complaining about the increase in property tax (which was recently
rolled back) last year, but 62% of the 12 lakh property tax assesses in the city have paid the tax
in the first half of this financial year.
Greater Chennai Corporation data shows at least 10% more assessees have paid taxes in the first
half of this year compared to the same period in the last fiscal. The corporation has collected
around ₹700 crore this year, which is at least ₹300 crore more than the collection during the
period last year.
This, however, will not benefit the corporation as the rollback will make it poorer by around
₹400 crore. Those who paid the revised tax will get the extra money adjusted against the next
payment.
An increase in cashless payments has helped collection. ―Many residents have opted to pay
online or at e-seva centres. Tax collectors have also gone to homes with point-of-sale
machines,‖ said an official. Many residents and associations had complained that the revision
was too high. The corporation, however, argued that property tax rates in Chennai are lower
than those of Mumbai and Bengaluru.
―It ranges from 50 paise per square feet for residential to ₹18 per square feet for commercial,
depending on the street. People pay many times this amount for monthly maintenance,‖ said a
corporation official.
Property tax in core areas of Chennai have not been revised since 1998. However, areas
annexed to the corporation in 2011 like Alandur and Ambattur zone, already had high tax rates
imposed by the erstwhile local bodies.
The corporation has a monthly expenditure of around ₹130-₹150 crore, including salaries and
payments to contractors. It gets around ₹70 crore from the state and the Centre. The rest has to
be made through property tax collection. ―It is with the surplus that we carry out civic projects,‖
said an official.
Sources said the Corporation will now begin a drive to collect property tax from the remaining
4 lakh assessees, at pre-April 1, 2018 rates.
Newspaper/Online ET Realty(online)
Date November 23, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/chennai-about-62-assessees-paid-increased-property-tax/72193184
Karnataka plans forum to sort out disputes between buyers and
promoters
The Karnataka RERA, which is ready with the draft, is likely to issue the notification in a
week’s time.
Karnataka is set to establish a conciliation forum to facilitate amicable settlement of
disputes between promoters of real estate firms and homebuyers, replicating Maharashtra and
Uttar Pradesh.
The independent forum consisting of representatives from homebuyer groups, promoters and
Real Estate Regulatory Authority (RERA) will sit across to hear complaints from homebuyers
and negotiate a mutually acceptable deal.
―We have observed that not all complaints that are registered with RERA need legal
interventions. Many complaints can be resolved if the aggrieved party and the promoter sit
across the table and arrive at a mutual agreement,‖ Karnataka Real Estate Regulatory Authority
secretary KS Latha Kumari told ET.
The Karnataka RERA, which is ready with the draft, is likely to issue the notification in a
week’s time. With about 3,394 complaints registered with K-RERA until now and the RERA
rules mandating disposal of cases within 60 days from the date of filing them, the initiative is
expected to cut down the number of complaints that the real estate regulator gets.
Section 32(g) of Real Estate (Regulation and Development) Act provides for initiating measures
to facilitate amicable conciliation of disputes between the promoters and the allottees through
dispute settlement forums.
Maharashtra was the first state to create the alternative dispute resolution mechanism and has
solved about 70% of cases.
The Karnataka RERA secretary said that the forum will have a representative from the
consumer and the promoter’s side and the RERA executive will monitor activities. ―We are just
adding one more layer of intervention. If the cases are not resolved at conciliation then,
homebuyers can file a complaint with RERA,‖ she said.
This alternative method is only an option for buyers. The complaint filing section on the K-
RERA website will give an option to approach the dispute settlement forum before proceeding
with their complaint, if the homebuyer wishes to.
Newspaper/Online ET Realty(online)
Date November 23, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/karnataka-plans-forum-to-sort-out-disputes-between-buyers-and-promoters/72195686
―Litigation will consume a lot of time and energy of complainants. The forum will be a relief to
homebuyers as they will have an opportunity for case redressal before getting into legal
hassles,‖ MS Shankar, secretary of the Forum for People's Collective Efforts, said welcoming
the move. He said homebuyers are hoping that cases can be redressed in twothree sittings at the
conciliation forum.
CREDAI Bengaluru too has welcomed the decision. Chairman Suresh Hari said that
conciliation is the first and the best option for aggrieved parties. ―The experience of CREDAI’s
grievance cell is that most cases arise due to ineffective communication or due to ego or
technical issues. These cases can be solved through mediation,‖ he said.
________________________________________________________________________________________________
UK: Additional 3% surcharge maybe levied on stamp duty land tax
for foreign buyers
UK residents and foreign buyers currently pay the same level of stamp duty, which is
applied at various rates that rise with the value of the transaction.
Britain's Conservatives said Friday they will make foreign individuals and companies pay more
tax on residential property purchases if they win next month's election. Prime Minister Boris
Johnson's party said it would levy an additional three percent surcharge on the country's stamp
duty land tax for buyers who are not tax residents in Britain.
UK residents and foreign buyers currently pay the same level of stamp duty, which is applied at
various rates that rise with the value of the transaction.
There has been sustained critism of the level of foreign ownership of properties in Britain,
primarily in London, despite drops since the 2016 Brexit referendum amid ongoing economic
uncertainty.
There are no official statistics on the sales of residential property to overseas buyers, but studies
show they have accounted for as much as a third of purchases in parts of central London in
recent years.
Meanwhile, a 2017 York University report showed that 13 per cent of new homes across the
capital were bought by non-residents in 2014-16.
Analysts and political parties agree this inflates house prices and makes it harder for people to
get a foothold on Britain's notoriously expensive property ladder.
________________________________________________________________________________________________
Newspaper/Online ET Realty(online)
Date November 23, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/uk-additional-3-surcharge-maybe-levied-on-stamp-duty-land-tax-for-foreign-buyers/72193349
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