Maharashtra planes to set up a separate regulatory authority

In an important move which will ease handling of housing society affairs, the state government has proposed setting up a separate regulatory authority to oversee them and resolve grievances by drafting a separate chapter specialized in housing in the Cooperatives Act.The present Act addresses regulation for credit, sugar and other cooperative societies together. The new chapter will chalk out guiding principles for dispute redressal and give judicial powers to the regulatory authority so that people don't approach court over minor matters.

A notification, issued on February 10 by the department of cooperatives, suggested separation of housing cooperative administration from other cooperatives to produce it more transparent and effective. The federal government, through the notification, put up a committee of experts and directed it to submit a report. The committee is led by Sandeep Deshmukh, joint registrar for cooperatives and slum rehabilitation, and includes existing and former members of the cooperatives department, besides experts such as for instance Ramesh Prabhu and Chhaya Aajgaonkar.

You can find over 70,000 cooperative societies in the Mumbai property  metropolitan region and the quantity keeps rising with the expansion in and round the distant suburbs such as for instance Navi Mumbai, Kalyan-Dombivli, Thane and Vasai-Virar. Around 10 years ago, the quantity was 45,000-50,000. Last year, additionally, it came to light that 40-50% of the affordable homes in Mumbai  societies were still unaudited and hadn't conducted elections.

The mandate of the committee includes exploring effective laws and efficient procedure to greatly help society members achieve the deemed conveyance (ownership) of the bit of land without any hindrance from builders.

Content  What Makes Mumbai, Delhi and Bengaluru Preferred cities for Investment Real estate Companies in Mumbai have managed to raise Rs 3,400 crore after Demonetisation Good news new flats in Mumbai Why Mumbai is considered to be one of the most interesting real estate destination in India

Prabhu said the notification proposes to completely change the existing norms for housing society elections, besides suggesting a clear-cut guideline for management, conducting repairing works and handle public grievances in daily society affairs. “Additionally it suggests getting rid of old laws which have become redundant.

The notification also suggested that the new Act should look after the requirements of not only big housing societies and townships, but in addition bungalow apartments and open plots. “Regulations should encourage quality construction of apartments in Mumbai , transparent transfer of ownership, and routine maintenance. To help make the new law more comprehensive, more NGOs, social workers, legal experts and other experts should take the committee to make the report and recommendations more inclusive.

What Makes Mumbai, Delhi and Bengaluru Preferred cities for Investment

Confused in choosing  the city that will choose to invest in the entire year 2017 and Mumbai, Delhi and Bengaluru got top preference amongst another cities of India. All three cities received over 22 per cent votes, respectively.

What makes them preferred cities for investment? To begin with, all three offer ample job opportunities. Corporate conglomerates have before made a beeline for acquiring office space in these cities.

Delhi mightn't function as the chosen destination for corporate but its NCR arm is. Gurgaon is the millennium city while Noida due to easy and cheaper accessibility to office spaces have caught the interests. Owning home in Delhi is a guaranteed approach to earning of profit in the future. Therefore, even though the high earning professionals, HNIs and NRIs look towards newer constructions in the NCR, they would not mind investing in Delhi when they a good deal.
Good transport options have certainly helped the investability quotient of the capital city.

Property rates in Delhi is definitely higher in comparison with the NCR. Owning home this is a matter of prestige. I own home in Adchini. Initially, though the area is on the main road to MG Road, it had been a village area with old construction houses and narrow alleys. My house was a 2BHK a ground floor unit with open space in the front. I took a property loan and built a four storey house. I have kept a floor for my family and have rented the rest of the floors housing one rooms to students and young professionals. Since it is near Qutub Institutional area, I haven't any dearth of tenants.
Mumbai happens to be the land of new projects in Mumbai for many sections of the society. Not only the office cadre, folks from all walks of life come to the city. As a result, chwal and one room – matchstick sized living areas are popular. Shortage of space and everyday costs has made accommodation expensive.

Nimisha Aggarwala, an executive professional in one of the start-ups lives in a rental accommodation in Andheri East. she says, “I'm quite happy surviving in a rental accommodation. I don't think I are able to afford to invest in affordable homes in Mumbai as the values are sky-high. Also, I would like to buy a house that will give me more space. I'm not originally from Mumbai and therefore spending so much money on an office doesn't seem profitable to me.”

Bengaluru is the silicon valley of India. Its IT emergence is no longer news anymore. The city is growing and is its real estate. The city holds a lot of promise and in comparison to Delhi and Mumbai, the rates of  property in Mumbai are pretty affordable. Every year, it sees new entrants which ultimately leads with a percentage of investment.

In outer Mumbai 1BHK flat prices falling

Developers with projects outside Mumbai said incentives for affordable homes announced in the budget will increase the realty market in the city. The budget has eased rules in 2010 to grant 100% tax exemption on profits from selling flat in mumbai of 300-600 sq ft carpet area as opposed to the built-up area. This may increase the size of the flats which a creator will make profits without the tax by 25-30%. In non-metro areas, limit is 600 sq ft carpet area and in metros, 300 sq ft.

Developer Manohar Shroff, former secretary of Maharashtra Chamber of Housing Industry (MCHI-Navi Mumbai), said flat purchasers with a limited budget will benefit a whole lot from the relief extended to builders.

For example, if a residence in the affordable in Mumbai was earlier coming in at, say, Rs 20 lakh, it'll now cost Rs 17-18 lakh due to the 100% tax exemption offered.
"In Mumbai, a flat with a 300 sq ft carpet area in Dahisar or Mulund used to cost in the product range of Rs 25 lakh to Rs 30 lakh. Nevertheless now the price will drop by Rs 2-3 lakh per unit as more builders will become projects in this category, and so the supplies will automatically increase, thereby reducing the expenses,' 'said secretary of Builders Association of Navi Mumbai, Haresh Chheda.

Chheda said the Budget in addition has extended the time limit to savor tax exemption for such constructions from 3 years to 5 years.

In the extended suburbs around Panvel, Kalyan, Badlapur, Ambarnath-where the carpet area limit to savor the exemption has been set at 600 sq ft-the cost of a 1BHK will further reduce as land costs are much less steep as in Greater Mumbai.
"The affordable housing sector could not need called for an improved budget. It's a series of directives that are positive, especially the infrastructure status to this sector. It's been a longstanding ask that's finally materialised", said Rajesh Krishnan, CEO of Brick Eagle. His company has affordable housing builders in Mumbai Tamil Nadu, Gujarat and Rajasthan.


He also said, "Conferring infrastructure status will make borrowing for projects easier because of longer tenures of loans and better terms. The us government has recently eased norms for registered FPIs for investment in the infra sector (subscribe to bonds issued by unlisted infra companies) that'll prove beneficial.''

Maha airports to get PPP wings

Maharashtra stands to achieve big style from the Centre's decision to public-private operate airports in smaller cities in the partnership (PPP) mode.An Airports Authority of India (AAI) official told TOI the state would get priority with this front for having the maximum number of airports in the country. The sum total number of airports and airstrips in Maharashtra--both used and unused--is a lot more than 25. Of them, AAI manages six--Mumbai, Aurangabad, Pune, Solapur, Gondia and Kolhapur. The Maharashtra Airport Development Company Limited manages a complete of eight airports, but not one of them is fully operational at the moment. Kolhapur, Solapur, Aurangabad and Amravati come under the tier-II sounding cities. Airports in these cities will probably get wings in PPP mode. TNN

Real estate Companies in Mumbai have managed to raise Rs 3,400 crore after Demonetisation

Several real estate firms have managed to raise Rs 3,400 crore in the past 2 months, following demonetization, which shows that there is not enough pressure on funding. Flushed with new credit lines, developers are getting a new lease of life to carry on to housing costs.

According to a financial report, firms like Rohan Lifespaces, Lodha Developers, ATS Builders, Puranik Builders, Kumar Urban Development, among others, are given debt in the months of Nov and December according to their MCA filings.

This includes funding from each housing finance firms and banks. “It clearly signifies that there's still excess liquidity within the system; whichever company isn't defaulting has access to capital.

In the past 2 years,  builders in Mumbai were not able to raise prices due to floundering sales, resulting in a natural time correction. Largely, companies were able to hold on to rates as funding, particularly through personal sources and structured debt, reached record high levels, providing developers the much needed support to not to surrender to client expectation and reduce costs.

Developers were positively enjoying the who-will-blink-first game with consumers rather than cutting costs, they most popular to borrow heavily from personal sources, notwithstanding it meant a heavier finance value, Limaye added. however post-demonetisation sales tumbled to a six-year low, intensifying expectations of a price reduction.

If there's no scarceness of funds, a minimum of the large-sized firms won't resort to cutting costs, specialists same. as an example, Bengaluru-based Sobha Developers has already same it'll not reduce prices in any of its projects because it believes costs in bangalore stay reasonable.

An analyst same it may be the argument for the end-user-driven southern market however hardly be extended to other geographies. Sumit Jain, national director of residential services at Colliers India, said there's far more pressure in markets like city and also the Delhi-NCR.

Click here to know the Realestate Trend in Mumbai

Budget Expectations largely Unanimous Among Builders in Mumbai

Over the past few months, builders in Mumbai and those in much else of the country have received a huge boost from the actions of the central government. Stakeholders in the countries realty market such as realestate developers in Mumbai and homebuyers are both are expected to benefit greatly from steps taken by the central government over the past few months.

Reasons for Cheer

The passage of the Goods and Services Tax (GST) last year and the Real Estate Regulatory Act (RERA) are both expected to provide a boost to real estate in Mumbai and across the nation.

Why More Flats are expected to be sold?

Other measures by the government such as the lowering of interest rates for certain segments of homebuyers as well as nearly 70 days of the completion of demonetization both have given the realty sector a boost.

The interest rate subvention scheme which was announced by the PM as well as the announcement of lower interest rates on January 1^st of this year will both lead to the purchase of more flats in Mumbai and flats in much else of the country.

Builders Want a Lopsided Budget

The realty sector has mixed views concerning the budget and many within the sector believe that a balanced budget may have a lukewarm impact upon real estate in Mumbai and elsewhere. However there have been announcements such as the exemptions in the tax slabs for homebuyers, which will lead to increasing the purchasing power of consumers and keep capital liquid and flowing within the countries economy.

Many of the top buildersand developers in Mumbai also believe that by being formally granted the status of an industry, real estate in Mumbai shall prosper as will the sector in all other regions of the country.

Opening Floodgates of Homeownership

Builders and developers in Mumbai along with those in much else of the country hope that the upcoming budget should allow first time homebuyers and young consumers to purchase their first home with ease. Tax slabs that make it possible for such consumers to buy their first home are hoped for by many builders in Mumbai and by builders across India. A question in the back of the minds of many builders in the country is whether consumers can hope to receive more tax incentives over the next five years as such incentives will make it easier to buy flats in Mumbai and flats in other large metropolises across the land.

Putting More Money in Your Wallet

Real estate industry insiders are hoping that there is good news in the form of favorable policy announcements for homebuyers who wish to buy mid level flats in Mumbai and in other tier one cities across India.

A few sentiments shared by stakeholders in real estate in India are listed below.

• 1 Easing of tax slabs making it easier for consumers to buy property in Mumbai and in other large metros since it would increase the purchasing power of buyers.

• 2Reduction in the taxes which middle income households pay

• 3Changes in the income tax slabs which would make it easier for buyers to purchase a home as an investment vehicle.

 

Conclusion

Hence many real estate stakeholders such as builders and developers in Mumbai and across the country hope that the government’s actions would lead to greater purchasing power for consumers, particularly in tier 1 cities. Such an increase would allow more households to buy flats in Mumbai or flats in other large Indian metros.

Good news new flats in Mumbai

If you are first time home buyer, then 2017 will definitely bring some good news. But if the ongoing real estate climate is making you little worried. Then please ward off all your worries. So, if you postponing your idea of buying flats in Mumbai in wake of demonetization chances at high that you would regret in future.

The experts believe that the demonetization step along with the Real estate regulation and Development Act, 2016, will increase the standard of the real estate sector and probably take it to the international levels. This positive real estate development would the inflow of funds from the institutional investors, banks and higher unit sales. Therefore, do not let your anxiety to create an obstacle in the way of making the most important decision of life.

Some of the highlights of real estate in Mumbai in 2016 are as follows-

•Mumbai and the MMR are soon to witness the major reduction in the prices of the residential or the additional credits. However, the buyers should not stop their efforts to search their dream abode. The experts feel that now the home buyers are expected to get better customer service and if you are first time buyer then you will surely treated like a king.

•The Union Budget, 2016 has bought have a delight for the first time buyers and the real estate buyers. The union budget introduced an additional interest reduction of Rs.50, 000 per year for loans up to Rs. 35 lakhs with a condition that the value of the home does not exceeds the value of Rs.50 lakhs. The RBI’s policy of keeping the repo rate unchanged and amendments made by RERA, will surely make the overall environment for the property in Mumbai good.

•The builders today are upcoming with several schemes and lucrative incentive to allure the first time buyers. Post demonitisation developers are trying to clear off all the doubts in the mind of the customers. They are offering flexible payment plans, price protection guarantee and several other schemes.

Buying a home can be nerve –racking task and since the real estate market is cyclical in nature and this the perfect time for the home buyers to invest. If you decide buying home currently, then you can be fortunate to get a good deal as the flats in Mumbai are priced at all time low now.

Why Mumbai is considered to be one of the most interesting real estate destination in India

Mumbai which is the commercial and entertainment hub of India has been growing in leaps and bounds for past many years. The economic development of this mega city in the past years has caused the property rates in Mumbai to soar higher and higher. Mumbai for long has been the home for many Bollywood stars and some of the richest businessmen in the country due to which the real estate prices in this mega city have always been higher as compared to other metropolitan cities of India.

However, the real estate market overall in India has not seen that kind of a positive momentum in last one year or so. Even a city as popular as Mumbai has not been able to buck the trend and has seen relatively slow down in the real estate market. Even though the government has been coming out with initiatives such as housing for all, however, analysts still predict that it make take some more time for the real estate market to resume the uptrend which it was witnessing for the past many years. In fact, the bold step of demonetization taken by the government is expected to further delay this recovery process of  real estate in Mumbai.

Current scenario of the Mumbai real estate market

In spite of the relative slowdown in real estate market, prices for apartments in Mumbai is over the crore marker which makes it extremely difficult for the salaried individual to own an apartment. Even with the existence of various housing finance companies eager to provide finance for these highly priced apartments, it is certainly not easy for the salaried class to bear the burden of EMIs which will be in lakhs. This affordability problem in Mumbai is a major problem which has left many houses unsold, thus leading to a slowdown in the real estate market. The dismal performances of the listed developers like Orbit Corporation and Housing Development and Infrastructure Ltd (HDIL) in Indian stock exchanges are a testimony to the slowing real estate market of Mumbai.

While on one side we see the increasing prices of  propertiesin Mumbai, on the other side we see a stagnant demand. People are waiting on the sidelines to invest their money in the properties but are waiting for the first sign of a drop in the rates.