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NHB Set to Tighten Rules Governing Affordable Housing

by Paul Joseph October 19, 2010 Uncategorized

The housing regulator plans to tighten the rules governing affordable housing as it looks to ensure that projects built on subsidised priority loans are actually delivered. The National Housing Bank is working on a proposal that seeks to make it mandatory for such projects to get rated by credit rating agencies such as Crisil and CARE . “We are yet to work out the details,” said RV Verma, chairman and managing director of National Housing Bank, a housing finance institution owned by the Reserve Bank, which also functions as the sector regulator. “We will hold discussions with the real estate industry, financial institutions, government bodies and other stakeholders before finalising the guidelines,” he said. There are over 25 developers across seven states in urban India, which offer good-quality low-cost housing in the range of Rs 3-7 lakh. The move to get ratings is aimed at bringing in transparency and discipline into the market and enhancing allround confidence. “Better and credible information will be available in the market, which will benefit all stakeholders,” Mr Verma said. If the proposal sails through, the financing institutions will be in a better position to provide lending to real estate projects, both directly and indirectly. “Ratings will provide us with the comfort that loan to such groups or buyers in that project will not turn into non-performing assets,” said a senior official with the country’s largest lender, State Bank of India . The ratings will also be a useful indicator of the quality of the project and the developer. It will also provide information on the current standing of the project. The move has also found favour with other government arms. According to an official with the ministry of housing and urban poverty alleviation, credit rating will encourage builders as they’ll also be sure of credit being made available to them.

Tagged as: country, government, india, project, real estate, reserve, stakeholders

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Booked flat in Bopal? Now, pay more

by Paul Joseph August 27, 2010 Uncategorized

Get ready to pay more for the flat you booked in Bopal. The urban development department of the government of Gujarat has decided to levy extra charges on realtors operating in Bopal, particularly south Bopal. Now, real estate players will have to pay for getting extra 0.6 FSI (floor space index) and they are going to pass on the additional cost to the customers. Some 17 real estate developers had launched residential schemes in south Bopal, which falls under town planning (TP) scheme No. 3 prepared by the Ahmedabad Urban Development Authority (AUDA).AUDA’sdraft scheme of TP-II and TP-III covered a majority area of Bopal as residential zone-I (R-I) allowing the realtors to build high-rise buildings. However, the urban development department changed AUDA’s plan and declared TP-II and TP-III as R-II in April 2010. This made builders and customers, who had already booked their flats, anxious. Having received suggestions and objections from all the stakeholders, UDD finally declared TP-III as R-I zone along with TP-I and TP-II as R-II zone. However, it levied additional charges of 40% of jantri rate for offering 0.6 additional FSI in TP-III. So the builders will have to shell out more money to get final approval for their high-rise building plans and building usage permission for their schemes. The realtors will naturally pass on the additional cost to the customers. However, this cost will vary according to saleable area of the scheme. The realtors are of the opinion that there will not be much increase in the property rates for the customers who have already booked their flats. The increase in the price will be in the range of Rs20 to Rs50 per sq foot depending upon plot size and total marketable area. Uday Vora, managing director of HN Safal, said that the additional cost will not be around Rs20 per sq ft in Safa Parisar taking into consideration plot size and saleable area in our scheme. “We do not think customers will object to paying a little more,” said Vora. Although customers may not be willing to pay more, they will not have any other option as they would not be able to afford to get their booking cancelled as property prices have gone up sharply in the past few years. “If the customers will not pay additional money, the developers will return their original amount and seek other properties that may not be viable for them,” said sources. As the government has declared TP-II as R-II zone, the future of four schemes in this area is uncertain. Various realtors have planned and even started construction work of four high-rise residential apartment schemes in TP-II of Bopal. If the developers return money to the customers who have already booked their flats, the latter will lose interest as well as they will have to pay higher prices for new property compared to what they have already booked. Source: http://www.dnaindia.com/money/report_booked-flat-in-bopal-now-pay-more_1428419 Filed under: Builders/ Developers , New projects Tagged: FSI , Real Estate in Bhopal

Tagged as: flats, fsi, opinion, scheme, source, stakeholders

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CREDAI Strengthens Presence in South Indian States

by Paul Joseph June 22, 2010

The state chapter of the Confederation of Real Estate Developers’ Associations of India (CREDAI), Tamil Nadu, the apex body for real estate developers in the country, recently announced the launch of its Coimbatore, Madurai and Tiruchy chapters. Realty organisations from across Coimbatore, Madurai and Tiruchy would now be a part of CREDAI Tamil Nadu for strengthening the association’s presence in the southern part of the country. The launch of CREDAI is significant for both the developer community and consumers, when the growth of real estate in the region is moving northward with more and more projects being conceptualised and taken up for execution in order to meet the upsurge in demand both in the residential and commercial segments. The amalgamation of these builders’ associations with the real estate’s apex body will bring in more transparency and efficiency into the process, which, in turn, will create a favourable cascading effect into the industry augmenting real estate growth in the southern region. With its growing strength, CREDAI Tamil Nadu will be able to provide a more organized structure and ensure smoother development for the real estate sector in the region. As a part of consumer connect initiative FAIRPRO, an expo on real estate business, will be organised in Coimbatore. Addressing the media here on Tuesday, T Chitty Babu, President of CREDAI Tamil Nadu, said, “Transparency and ethical business practice are cornerstones on which business is built and with these three cities converging under the CREDAI umbrella, we are set to create transparent and credible relationship with all our stakeholders, primarily the consumers.’’

Tagged as: chennai, country, media, real, real estate, real estate india, stakeholders

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Delhi to Have Real Estate Regulator by Year End

by Paul Joseph May 6, 2010

Delhi will have real estate regulator by this year-end, Urban Development Minister S. Jaipal Reddy said Thursday. He also said the government was talking to other states to have similar regulators. “The state governments have sounded positive. It would take time to happen. But Delhi will get a regulatory authority for the real estate by this year,” Reddy told. He said the legislation process for the real estate regulator for Delhi would soon be completed as the draft bill has been circulated to the stakeholders. According to him, the regulator once in place would prevent real estate players from indulging in unnecessary profiteering. The minister also said the Metro rail will stretch to 190 km in the national capital region by the time the Commonwealth Games start here October 3.

Tagged as: commonwealth, delhi, gurgaon, national, real estate, real estate india, stakeholders, the-government, year

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Realty India 2010 Kuwait to Showcase Widest Range of Properties from Major Indian Developers

by Paul Joseph January 15, 2010

Presented by Indian media behemoth Times of India and organized by Mindspace Events and Exhibitions, in association with Response Events and Exhibitions, Kuwait, the high-profile Realty India 2010 exhibition which will be held on 15th and 16th January at the Ramada Hotel, Riggae from 11:00 am to 8:00 pm, will showcase the widest range of properties by renowned developers, ever displayed at a single venue in Kuwait. With the participation of well-known and reputable developers from across India, and properties on display specifically targeting the interests of NRI audiences, the Realty India 2010 show is geared to be a not-to-be-missed event. For people looking to buy a home, or invest in the lucrative Indian real-estate sector, the Realty India 2010 exhibition could prove a golden opportunity to interact directly with developers and financiers. With thousands of properties varying from high-end luxury villas to best-value properties priced around Rs12 lacs on offer, the exhibition could prove to be the ideal hunting ground for Indian property prospectors. According to industry analysts the Indian real-estate is once again proving to be among the most rewarding investment opportunities. A survey commissioned by Barclays Wealth and conducted by the Economist Intelligence Unit in September 2009, showed the growing appeal of emerging markets as property investment destinations – with India listed among the top-five countries in the priority list. Property consultants Jones Lang LaSalle Meghraj predict that India is expected to outperform global markets with growth rates of more than 7-10 percent in the coming years. With the number of people earning more than Rs 2 lacs per year set to double in the coming years and with more than 2.5 million college graduates teeming out of universities each year, the demand for affordable homes is unprecedented. In urban India alone, more than 25 million affordable homes will be needed in the coming years. As this momentum fueled by local demand grows, Indian developers are moving out into newer areas, building a wide range of properties with features and amenities to suit every budget. Realty India 2010, a first of its kind integrated exhibition, featuring 30 real-estate developers offering properties across the length and breadth of India and involving investment funds, home financing institutions and other stakeholders dedicated to the property sector, is set to establish benchmarks in property exhibitions. Among the real-estate developers participating at Realty India 2010, are renowned builders like Unitech, Tata Housing, Supreme, Royal Palms, Jaypee, IREO, Emaar MGF, Ekta and a host of others.

Tagged as: housing, india, real estate, real estate developers, stakeholders

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