Why elections spell trouble for real estate sector

Over the past two decades, every pre-election year has seen a decline in investments in the real estate sector, which does not bode well for job creation

At a time when India’s real estate sector is yet to find its feet under a new tax (GST) and legal (RERA) regime, the liquidity squeeze in the non-banking financial sector has morphed into a liquidity crunch for the real estate industry, which had turned to NBFCs (non-banking financial companies) for support after bank lending to the sector began to stagnate.

However, even with the worst of the liquidity crisis behind us, the road ahead for the real estate sector appears bleak and one big reason is the uncertainty around the 2019 elections, a Mint analysis suggests.

Data from the Reserve Bank of India (RBI) show that NBFCs emerged as a l...

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What is a sale deed and terms and conditions that home buyers should be aware of..

What are the main components that a sale deed must have and how should it be executed, to protect the interests of the home buyer? We explain..For a home buyer, the much awaited sense of ownership of the dream home, follows the execution and registration of the sale deed.

The sale deed, from the seller to the buyer, is the primary document evidencing ownership and vesting absolute title to the property. Hence, the buyer is advised to scrutinise the terms of the sale deed carefully, to ensure that his rights are protected and absolute title to the property is conveyed.

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Important aspects of a sale deed

Section 54 of the Transfer of Property Act, 1882 (TP Act), defines a sale as a transfer of ownership of an immovable property for a consideration...

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Realtors can’t lure investors by promising ‘assured returns’: H-RERA

​​ Terming such schemes as “fraud”, the authority said SEBI has already declared “assured returns” as illegal Ponzi schemes.

GURUGRAM: Haryana Real Estate Regulatory Authority (H-Rera) is going to issue notices to developers who are trying to lure people to invest in their residential and commercial projects, promising “assured returns”.

Terming such schemes as “fraud”, the authority said SEBI has already declared “assured returns” as illegal Ponzi schemes.

To lure people to invest in their real estate projects, many developers are offering “assured returns” schemes, in which investors in residential projects are assured of a fixed rental income, while in commercial projects, those assured returns go up to as much as 12%.

“It has come to our notice that many rea...

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Homebuyers write to PM: Don’t entertain changes in RERA for 3 years

Model rules must include penalties for officers of state administration who delay real estate projects

Homebuyers have alleged that state departments handling real estate matters are trying to dilute the enforcement of the Real Estate Regulatory Act ‘designed to be a lifesaver for home buyers’ and reached out to the Prime Minister and the Minister of Housing and Urban Affairs to ensure that no changes in the RERA be entertained for at least three years after all states have implemented it in letter and spirit.

“There is rampant corruption in the administration of departments handling real estate in states...

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A Guide to Paying Property Tax in Gurugram

Property tax is a recurring charge that home owners have to pay every year. However, the tax amount varies from one location to another. This is a guide to paying property tax in Gurugram

Owners of residential properties in Gurugram, are liable to pay property tax to the Municipal Corporation of Gurugram (MCG) every year. The MCG follows a simple system for property tax calculation that mainly takes into account the size and use of the property.

In November 2018, the MCG issued notices to the owners of paying guest (PG) accommodations in the city, asking them to pay Rs 1,000 per year per bed in their property...

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Real Estate is Fastest-growing Business in India and the Opportunities are Huge

Business is much easier to do after GST. It will add considerably to growth over the next few years!

Your brand has been one of the best managed corporates and you have guided the group higher during even the licence raj. In approximately 50 years, you have been active in India Inc. You have seen different economic cycles, different governments and leadership transitions. How has been the journey for you?

We have grown very well. During the license raj period, growth was more difficult. After 1991, post liberalisation, growth has been better and we now have 750 million consumers who use our products in India and about 1.15 billion consumers globally. We might very well be the group with the largest number of consumers headquartered in the developing world...

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Indiabulls Real Estate buys 140 acre land in Gurugram

Indiabulls Real Estate recently reported a 23 per cent increase in its consolidated net profit at Rs 75.91 crore for the quarter ended September 30. Its net profit stood at Rs 61.64 crore in the year-ago period. Real Estate on Tuesday said it will acquire 140 acre land at Manesar in Gurugram to develop an integrated township and commercial building.

In a filing to the BSE, the Mumbai-based developer said that its wholly-owned subsidiary Loon Land Development Ltd has “entered into definitive agreement(s) to acquire a land parcel/development rights on approx 140 acre land, situated at Sector 79, Manesar, Gurugram, for development of integrated township and commercial building”.

Indiabulls Real Estate recently reported a 23 per cent increase in its consolidated net profit at Rs 75...

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Over 15% Houses Completed In Urban Areas under PMAY Scheme in Three Years

Last month, the ministry approved construction of nearly 1.12 lakh more affordable houses for urban poor, taking the total number of number of houses being funded under the PMAY (Urban) to 54, 95,443.

NEW DELHI: Over 15 per cent of the 54.95 lakh houses sanctioned in last three years under the Centre’s flagship Pradhan Mantri Awas Yojana (Urban) have been completed, according to data provided by the Housing and Urban Affairs (HUA) Ministry.

While the government has set a target of one crore houses to be constructed in urban areas across the country over a period of seven years from 2015 to 2022 and claims the work is on full swing, the opposition Congress has questioned its seriousness citing the “small target achieved” so far.

Last month, the ministry approved construction of nearly 1...

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Refund May Not Be Allowed If Project Is 40 Percent Complete: Harera Gurugram Chief

Real estate developers who procured occupation certificates fraudulently to be taken to task

Chairman of Gurugram Haryana Real Estate Regulatory Authority (HARERA) K K Khandelwal has made it clear that in projects where construction is 40 percent complete, refund may not be allowed to ensure that the project is completed. He has also said that real estate developers who procured occupation certificates fraudulently will be taken to task.

The purpose of RERA is to balance the interests and protect the rights of the key stakeholders – builders, buyers and agents. “But our first priority is to ensure that home buyers get possession of their homes,” said Khandelwal, adding that 66 percent projects have been completed in Gurugram (with minor differences) even after 20 to 25 percent delay.

He ...

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SOUTH OF GURUGRAM – A RISING SUN

Yes, you heard it right. South of Gurugram is the next best area on the boom. While experts are already claiming that Sohna, also known as South of Gurugram will continue to rise up to new heights for at least next 15 years, there is no denying the fact that being real close to Gurugram which is a leading industrial and financial hub, Sohna will definitely make into the list of the top fastest growing cities in India.

With just 15 minutes drive from Golf Course Extension Road, South of Gurugram boasts of a great location and is easily accessible from all the major cities in Delhi NCR, i.e. Faridabad, South Delhi, Gurugram and Noida...

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