Interpretations of the Indian real estate sector from the Union Budget

Below are some of the expectations of the Indian real estate sector from the Union Budget 2017-18:

Encouraging Developers to Build Affordable Housing Projects: The government may announce several new measures to encourage developers to build affordable housing projects to fulfill their "Housing for All by 2022" mission. If "housing for all by 2022" has become a reality, the government will have to provide tremendous incentives for the real estate sector to make homes more affordable and produce much faster to meet overall objectives. Currently, there has been no intervention from the government in terms of land acquisition or land development costs which remain high.If the government can work towards reducing pain for these budget housing segments, more relevant housing units will be built quickly and successfully by private developers. In addition, the government is required to expand the scope of External Commercial Borrowing (ECB) for construction finance for a broad range of housing projects and is not limited to low cost / affordable housing. Tax benefits should be relaxed further for home buyers. For the first time all home loans should be revised to include all home loans up to Rs 3,00,000 including interest and not limited to a value of only Rs 50 lakh. The government has already announced benefits of home loans to low-income people by providing a rebate of up to 4 percent on home loans of 12 lakh taken under the Pradhan Mantri AwasYojana.

                                                                                                 

To grant industry status to the Indian real estate sector: The demand for granting industry status to the Indian real estate sector has been pending for some time. Directly or indirectly, the real estate sector contributes more than 15% of India's GDP. Developers are forced to borrow at high interest rates in the absence of industry status. Due to high borrowing costs and non-availability of funds, construction activities are delayed and hence the cost of houses increases. Once the status of the industry is given to real estate, it will become easier to make affordable housing a dream for all. So far, the affordable housing target is far behind and this can only be achieved if the sector gets industry status which will help drive housing demand in India.

Clarity on GST: While the Goods and Services Tax (GST) tax structure has been announced last year, the clarity of GST as to which tax rate will be applied to the real estate sector is still awaited. This will define the way in which the real estate sector will grow in this financial year. A GST clarification will also be required on the abatement scheme and whether credit for input tax will be allowed if the composition scheme is availed by the developers.

Single window clearance for the real estate sector: Developers have long been demanding for single window clearance to address delays in government approval. If developers are able to get all the necessary approvals on time, then they are able to execute their projects on time and this will also reduce the cost of homes. Therefore, to avoid unnecessary delays in construction and to reduce the cost of homes, single window clearance is required.

Need to increase house rent deduction limit: Salaried individuals receive House Rent Allowance (HRA) as a component of their total salary, and can therefore claim substantial deductions in cases where the salary and its HRA component are high. However, a salaried person or a self-employed person without an HRA component or those making lump sum payment without an HRA component can only claim a maximum deduction of Rs 5,000 a month under Section 80GG. This budget should address this variation in house rent reduction limits.

To make tax slabs and tax reporting easier: Government can focus on easing tax reporting structures. In addition, the benefits of demonetization practice should be extended to the common man through relaxation of tax slabs and offering higher level of exemption. The idea is to reduce the actual tax incidence as well as broaden the scope of tax, with the stated intention of reducing corporate tax.

Apart from the above points, the real estate sector is expecting some more announcements in the Union Budget 2017-18, such as higher tax savings on income tax sups, housing loans and house insurance premiums for first time home buyers and providing clarity on beneficiaries Under the Pradhan Mantri Awas Yojana etc.

Writing-irreversible reasons with the help of Society by-law

Housing societies need a set of rules and regulations to run large or small.

However, they require bye laws in place to register it. The in-laws are nothing, but the guidelines have to be followed by the members of the society to ensure the proper functioning of the community. In addition, with the help of bye-laws, issues can be addressed in a timely and effective manner.

These are local / private laws and are imposed immediately after the housing complex is registered. These laws are mandatory and extremely useful as the day-to-day functioning of the campus is monitored and the issues are resolved in no time.

The by-laws also cover all monetary transactions conducted and received by the housing committee and require members of the housing committee to show all monetary details during the audit. It is here that it becomes difficult, especially for the Treasurers, to keep a record of irrevocable liabilities. Well-known irrevocable dues include loans and money spent to recover any cause or loss caused by circumstances inevitable by the housing society.

Laws are different for different societies as it also depends on the committee members which laws they want to incorporate for the smooth functioning of their society. However, below are the two main by-laws which we feel should be added to the by-laws of any housing society for the committee so that its irrevocable arrears can be written off smoothly.

Society By-Law No. 148

Under this law, fees charged by society according to irreparable dues can be written off and members are required to pay these expenses. As noted before these irrevocable liabilities, some money for debts or other such accumulated losses may be spent to recover the stuck. However, check whether classified as irrevocable arrears as stated by the statutory auditor appointed under Section 81 of the Act.

Society By-Law No. 149

•    By-laws can be written only when the general body of the society approves the same.
•   If the society is indebted to a financial agency, the approval / approval of the agency is very important for such amounts.
•   The third also requires the approval of the registration authority. However, if the Society is classified as A or B in its final audit, the bank's permission (if it is associated with any) or any such financial agency or registration authority is not required.
•   By-laws are thus important for every housing society, not only for their proper functioning but also for registration and other legal processes. However, if you want to get an in-depth knowledge about these

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Real estate market in Gurgaon

2018 did not live by the expectations, for the real estate industry, and the market was on a slowdown from the starting of the year due to the execution of game changing policies by the government.

2020 Gurgaon is shining better than expectations, with multiple factors enhancing Gurgaon real estate development on several fronts. 

The real estate trends expected for Gurgaon in 2020:-

Economy: India’s economic growth is balanced to create more job opportunities and Gurgaon is a hub of every major business. This will lead to the establishment of jobs and more people moving to the city will lead to housing demand. There will be both, the end-users buying homes as well as the investors buying properties to generate rental income from.

GST: GST is now working absolutely smoothly and there are talks of bringing the entire real estate segment under it. The execution and reformation of GST are not just advantageous for the businesses, but also for the buyers.

Affordable Housing: he government’s initiative towards affordable housing has started creating results and more and more developers have started building projects to provide to the residents.

New launches:  Things are finally heading in the right direction and various developers are launching many new projects.  This includes both in the luxury segment as well as in the affordable.Investors are believed to be back in the market to create submissive income through rentals as there is a lot of workforces in the city, who needs housing, but does not want or cannot afford to buy one.

RERA act (Real Estate Regulatory Authority): It was introduced in 2016 to protect the interests of the home buyers. The main objective of RERA is to provide relief to buyers from malicious builders. In which the area of land proposed to be developed does not exceeds 500 sq meters or the number of apartments proposed to be developed does not exceed 8.

Infrastructure: Gurgaon is now well connected with surrounding area like Delhi, Faridabad and Sohna and major roads like NH-8, Dwarka Expressway, Southern Peripheral Road, Golf Course Extension Road, shall provide an improvement to connectivity.

There is also lots of growth expansion happening in terms of civil infrastructure as well as private one in terms of schools, hospitals, commercial space etc. It surely looks like Gurgaon offers excellent returns on investment for investors and an attractive lifestyle for end-users. For those planning to invest in 2020, Gurgaon is definitely a sure shot destination to grow your  

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DDA (Delhi Development Authority) housing scheme over 50,000 applications

DDA Housing Scheme 2019 which was launched in March 2019 and the last date for application extended till June, 2019. The Delhi Development Authority (DDA) is expecting that more than 50,000 applicants have applied for their housing scheme 2019.

According to DDA Vice President Tarun Kapoor, since people have applied for the scheme through various banks, it was difficult to compile the data on the same day. But as per the application money collected by these banks till last week, they have received more than 50,000 applications. Therefore, there are no plans to extend the DDA Housing Scheme deadline for this scheme. It is expected that by the evening the final figure will be out and it may take about 2-3 days to compile the amount collected.

Around 1,800 DDA flats in Vasant Kunj and Narela are being offered under the DDA Housing Scheme 2019. Of the 1,800 flats, there are 450 for High-Income Group (HIG), 1,550 for Middle-Income Group (MIG), and 8,300 for short. Low Income Group (LIG) Flat in addition, 7,700 flats were offered under the Economically Weaker Section (EWS) category. Most applications for flats in Vasant Kunj are likely to come up.

At the same time, DDA has offered 2,000 flats under the old scheme, which have been fully booked, while around 1,000 flats are still available under the old scheme. These old inventions are still available and interested stakeholders can book them online. This offer is on a first come, first served basis and the online portal will remain open till the inventory ends.

In 2014, DDA received 1 million applications for 25,000 DDA flats in the low income category in Narela and Rohini. But due to lack of infrastructure, poor connectivity to housing complexes and the extremely small size of LIG flats, around 13,000 flats were returned.

Check the registration fee for each category of flats available under DDA Housing Scheme 2019:-

·        Janta Flat- Rs 10,000

·     1BHK- Rs 15,000

·     EWS- Rs 25,000

·     LIG- Rs 1 lakh          

·     MIG/HIG- Rs 2 lakh

Applicants who can apply for DDA Housing Scheme 2019. The eligibility for this is as follows:-

• Applicant should be a citizen of India.
• The applicant age should not less than 18 years.
• The applicant should not have full or partial ownership of any residential house or plot in New Delhi, Delhi or Delhi Cantonment on leasehold / freehold basis, either in his / her own name or that of his / her wife / husband / minor /name dependent children.
• However, if the applicant's share in the land under a jointly owned plot or residential house is less than 66.9 square meters, he can apply under any scheme.
• A person who has already been allotted a house / flat constructed by DDA or any other land / own agency, even if it is less than 66.9 square meters, will not be eligible for allotment under any scheme of DDA.

Rates & Trends is a resource that provides Residential and Commercial property price trends for localities in number of cities across India. These price trends can be viewed in the form of tables or graphs from the locality's Sale and Rent perspective on SuGanta Realty Services llp. This detailed comparison lets you see the highest and lowest locality prices, apart from the average price with SuGanta.com

Pune: 40% of new supply is in the affordable segment

Pune recorded the highest price appreciation among the sixteen cities tracked by National Housing Bank's Residex. It also mentions that Pune's unsold inventory is 13 months, which is much lower than other cities.

Developers in Pune are responding to a clear call from Housing for All by 2022.

Commenting on this, Arvind Jain, managing director of Pride Group, says, "Pune's outstanding performance comes as no surprise, and it is unwavering belief that it was showcasing users and investors in Maharashtra's most dynamic economic power house is."

The city of Peshwas has come a long way in its real estate journey in the last five to seven years. From information technology to manufacturing to hospitality sector, Pune has all the right economic factors. In addition, its involvement in the program of 100 smart cities has reduced its arms.

Affordable Growth in Segments

                          

So, has Pune climbed the realty ladder? By the way, the confluence of economic drivers combined with affordable (read realistic) property values ​​has worked in Pune's favor. According to research by SuGanta Realty Services llp, the share of affordable projects was 42 percent in 2014, which increased to 49 percent in 2015. While other cities declined in the same period, Pune developed as a showstopper in the supply of affordable units.

Continuing the trend, Pune also recorded a healthy supply of affordable projects. According to the data, about 40 percent of the new supply was in the affordable category, followed by luxury and mid-segments with 36 and 24 percent respectively. Wakad, Talegaon, Chikhali. Moshi and Undri were the maximum five micro-markets, with a maximum number of inexpensive units.

“Affordable housing is in perennial demand in Pune. Although the premium and ultra-luxury housing categories are seeing stability rather than real growth, the affordable homes segment shows healthy demand and strength,” explains Kishor Pate, CMD, Amit Enterprises Housing Limited.

1 BHKs: Solution to Affordable Housing?

Another noted trend is that like other cities, there were significant launches of compact homes in Pune with about 28 per cent of the 1 BHK units in the projects. This clearly indicates that the city offers a plethora of options for both end-users as well as investors.

Recently, Maple Group announced the launch of 10,000 smart 1 BHK homes ranging from 281-302 sq ft. In Pune it will be built over a period of three years starting May 1, 2016 and spread across ten locations in Pune.

With the unique convergence of economic drivers, Pune is most likely to outperform and surpass other cities in times to come.

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