IT Department Issues Major Clarification on Cost of Real Estate Bought Before 2001 for LTCG Calculations

7/27/2024 12:15:00 PM

The cost of acquisition of real estate properties purchased before 2001 will be the fair market value (FMV, not exceeding the stamp duty value) as of April 1, 2001, or the actual cost of the land or building for the purpose of calculation of long-term capital gains (LTCG) tax, the IT department has said. The FY25 Budget has reduced LTCG tax on real estate to 12.5%, from 20% previously. However, the benefit of indexation was done away with for properties purchased after April 2001. The indexation benefit allowed taxpayers to compute gains arising out of the sale of capital assets after adjusting for inflation. For properties purchased before 2001, fair market valuation (not exceeding the stamp duty value) can be used as a base to determine the indexed price. The indexed price will then be reduced from the sale price for calculating LTCG which will be taxed at 20%. In a post on X, the IT department said an issue has been raised as to what would be the cost of acquisition as of April 1, 2001, for properties purchased before 2001. For properties (land or building or both) purchased prior to April 1, 2001, the cost of acquisition as of April 1, 2004 shall be the cost of acquisition of the asset to the assessee; or the fair market value (not exceeding the stamp duty value, wherever available) of such asset as on April 1, 2001. "Taxpayers can choose either option...," the IT department said in an X post on Thursday night. The IT department gave an example of how capital gains tax would be calculated in the case of properties purchased before 2001. It cited the example of a property whose cost of acquisition in 1990 was ₹5 lakh and as of April 1, 2001, its stamp duty value was ₹10 lakh, and the FMV was ₹12 lakh. If this is sold on or after July 23, 2024, at ₹1 crore, the cost of acquisition as of April 1, 2001, would be ₹10 lakh (lower of stamp duty or FMV). The indexed cost of acquisition in the 2024-25 fiscal year is ₹36.3 lakh (₹10 lakh*363/100), ₹363 is the cost inflation index for FY25 notified by the IT department. The LTCG in such cases is ₹63.7 lakh (₹1 crore minus ₹36.3 lakh). At a tax rate of 20%, the LTCG tax for such properties would be ₹12.74 lakh. Source : The Economic Time INDIA

Government of UT Chandigarh has Rescind Building Plans, OC of a Commercial Project of Godrej Properties

7/27/2024 12:14:00 PM

Godrej Properties has said in a regulatory filing that the government of Union Territory of Chandigarh has revoked the building plans and occupation certificate of a commercial project in the city for alleged ‘violations of conditions of environmental clearance.’ The "Office of the Estate Officer, UT, Chandigarh vide its order dated July 24, 2024, received by the company on July 25, has revoked the approved building plans and the occupancy certificate (OC) dated June 09, 2015, of our commercial building Godrej Eternia at Chandigarh citing alleged violations of conditions of environmental clearance,” Godrej Properties informed in a regulatory filing. The company said it will challenge the order. "We strongly believe that the order was passed based on a wrong premise and a misunderstanding of the facts. We are reviewing the order's contents and will contest this decision in the appropriate forum in accordance with the law," the company said. Godrej Properties said the revocation is on “alleged violations of conditions of environmental clearance regarding obtaining permission from the Standing Committee of National Board for Wildlife.” The Mumbai-based company, which is part of Godrej Industries Group, is one of the leading real estate developers in the country. Source: The Economic Time INDIA

Home First Finance Company Money Making Up 27% at Rs 88 Crore in Q1FY25

7/26/2024 12:13:00 PM

Home First Finance Company has reported a 27% year on year increase in profit to Rs. 88 crores in the first quarter of this fiscal against Rs. 69 crore profit a year ago. Their non performing assets, or bad loans stood at 1.7% unchanged from the previous quarter and is expected to continue at similar levels in the future. It assets under management grew 35% on year to Rs. 10,475 crores, while loan disbursement Grew 30% on year to Rs. 1,163 crores. About 86% of its portfolio comprises housing loans With average ticket size of Rs 11.6 lakh. “We have increased presence in 4 new districts taking the total coverage to 135 districts. The company plans to open 20-25 new physical branches in this financial year”, said Manoj Viswanathan, Managing Director at home First Finance. Home First Finance now has a total of 133 branches across 13 states in the country. INDIA

DLF’s Make Profit by 23% to 645.61 Crore in Apr-June Quarter

7/26/2024 12:12:00 PM

Real estate major DLF Ltd on July 25 reported a 23% rise in its consolidated net profit at ₹645.61 crore in the first quarter of this fiscal on higher income. It was ₹527 crore in the year- ago period. The company's total income increased to ₹1,729.82 crore during the April-June period of this fiscal from ₹1,521.71 crore in the corresponding period of the previous year, the company said in a regulatory filing. “Our development business recorded another quarter of strong sales booking of ₹6,404 crore leading to a record first quarter sales booking. We launched the second phase of our luxury project in New Gurugram- Privana West, which witnessed strong demand momentum and consequently was entirely sold-out clocking ₹5,600 crore of new sales bookings,” the company said. The company believes that the residential segment is witnessing a structural upcycle and hence “we continue to strengthen our new product pipeline. We stay committed towards leveraging this positive momentum and have planned a strong launch pipeline of an additional 9 msf of new products during the fiscal, across various segments and geographies including Gurugram, Mumbai, Goa and Chandigarh Tri-city,” it said. “We continue to witness healthy sales momentum and strong growth in collections leading to further improvement in our net cash position, which stood at ₹2,896 crore at the end of the period as compared to net debt of ₹57 crore in Q1FY24,” it said. The company's rental business continued its steady performance during the period. Q1FY25 consolidated revenue of DLF Cyber City Developers Limited (“DCCDL”) stood at ₹1,553 crore, reflecting y-o-y growth of 10%; consolidated profit for the quarter stood at ₹470 crore, registering a y-o-y growth of 20%, the company said. “We continue to have a positive outlook on the rental business and are accelerating our capex commitments to further strengthen our rental portfolio and deliver healthy growth,” it said. DLF has developed more than 178 real estate projects and developed an area in excess of 349 million square feet. INDIA

CBDT Chairman Announces Real Estate LTCG Transactions Sans Indexation Practically Propitious for Taxpayers

7/25/2024 12:38:00 PM

New Delhi, Jul 24 (PTI) The removal of indexation benefits from real estate transactions will turn out to be beneficial for taxpayers when it is seen through the prism of “actual market dynamics” rather than plain mathematics, CBDT Chairman Ravi Agrawal said on Wednesday. The head of the direct taxes administration in the country told PTI in a post-budget interview that the department did “some calculations” in this context before the measure announced by Union Finance Minister Nirmala Sitharaman on Tuesday in Parliament. Agrawal also underlined that the new system says there will be “less tax obligation” for a taxpayer here. The Budget 2024-25 has reduced tax rates on capital gains earned from the sale of house properties held for the long term but has removed the benefit of indexation available to taxpayers. The LTCG (long-term capital gains) has been reduced from 20 per cent with indexation benefit to 12.5 per cent without indexation for the real estate sector. Indexation is a mechanism to adjust the purchase price of an investment like a house to reflect the effect of inflation on such assets. Over the concerns raised by a section that feels taking away indexation will affect the real estate market adversely, Agrawal asserted that “practically, in most of the cases, the new scheme would be beneficial”. He said there were demands from various quarters and taxpayers to “simplify” the capital gains regime. The CBDT Chairman said the intention of this Budget measure is to make this process simple as any “complicated structure brings with it disputes also”. Let us see practically, the Central Board of Direct Taxes (CBDT) chief said, what is there in the market currently. “Take the case of real estate, the property rates or gains have gone up in the last ten years substantially. Now, compare your indexation with the new regime in the last 10 years, suppose you bought a property in 2014, and you are selling it in 2024-25. The benefit of indexation would be only 1.5 times. “So, consider if the property is some X, the index cost of the evaluation will be 1.5 times…in 10 years, it will only be going up by 1.5 times,” he noted. Now, we (CBDT and Income-Tax department) have done some calculations and found that if the property rate has gone up by three times in 10 years, the new tax regime (as announced in the Budget) is beneficial, the CBDT chairman said. “Practically, in most of the cases, property rates have gone up by more than three times. Leave aside the mathematics that says that if in ten years, the property rate has gone up two times or one-and-a-half times, then what happens and so on…the reality is that the property rates have gone up beyond three times and in realty sectors…tier one and tier two cities… circle rates have gone up…even the market rates. “Property rates have gone up by much more in 20-25 years for 2001, as the base, and now in 2024, in these 23 years, if the property rate has gone up by seven times or seven-and-a- half times, then the new regime is beneficial. So, maths aside, when you come to the actual market, you find that the new tax regime is better,” he said. Effectively, Agrawal said, the obligation of tax is less (in the new regime). “We have been living with this indexation regime for long and have got used to it, and it has come into our psyche. But, if we actually start analysing it, not from the mathematics point of view, but from the actual market dynamics, then one would find that this scheme is better,” he said. The CBDT chief said the new regime is also aimed at simplification of the process — one which should be easy to comprehend (for the taxpayer), easy to implement (for the tax department), and it also targets disputes arising out of “multiplicity of provisions” are minimised. He added that in the case of old properties, the grandfathering clause, as per the 2001 indexation of fair market value, would be applicable. The Budget has retained the indexation benefit for taxpayers on properties bought or inherited before 2001. However, the LTCG indexation proposal has been given effect “with immediate force”. Questioned about the rationale for the Budget hike in the securities transaction tax (STT) on futures and options (F&O) trade from October 1, the chairman said an “exponential increase in the transactions” here was being witnessed. It was seen that “everyone was participating (in F&O)…there are more risks involved in this and also the fact that if there’s so much participation, can we actually tap some revenue from that?” That being one reason, the other is the question do we promote that? We have seen a tendency, and should we say that it is okay or we should come up with a regime that normalises (the system), he added. The STT increase in Budget came a day after the Economic Survey flagged concerns over rising retail investors’ interest in derivative trading. The survey said that speculative trade has no place in a developing country. It also stated that the sharp increase in retail investor participation in F&O trading is likely driven by humans’ gambling instincts. PTI NES BAL BAL Source : The Economic Time INDIA

Budget 2024-25: What Real Estate Gains from the New Provisions

7/25/2024 12:37:00 PM

Nirmala Sitharaman, minister of finance, presented the union budget 2024-2025 in Lok Sabha on July 23, 2024. Presenting her seventh straight budget, Sitharaman said, India’s inflation continues to be low, stable and moving towards the 4per cent target. Core inflation (non-food, non-fuel) currently is 3.1 per cent. She also said this budget envisages sustained efforts on the following nine priorities for generating ample opportunities for all: Productivity and resilience in agriculture, employment & skiling, inclusive human resource development and social justice, manufacturing & services, urban development, energy security, infrastructure, innovation, research & development and next generation reforms. Here is what real estate industry gained from Union Budget 2025-25: Pradhan Mantri Awas Yojana (PMAY) Three crore additional houses under the Pradhan Mantri Awas Yojana in rural and urban areas in the country have been announced, for which the necessary allocations are being made. Under the PM Awas Yojana Urban 2.0, housing needs of 1 crore urban poor and middle-class families will be addressed with an investment of Rs 10 lakh crore. This will include the central assistance of Rs 2.2 lakh crore in the next 5 years. A provision of interest subsidy to facilitate loans at affordable rates is also envisaged. Transit Oriented Development Transit oriented development plans for 14 large cities with a population above 30 lakh will be formulated, along with an implementation and financing strategy. Rental Housing In addition, enabling policies and regulations for efficient and transparent rental housing markets with enhanced availability will also be put in place. Rental housing with dormitory type accommodation for industrial workers will be facilitated in PPP mode with VGF support and commitment from anchor industries. Stamp Duty FM said that centre will encourage states which continue to charge high stamp duty to moderate the rates for all, and also consider further lowering duties for properties purchased by women. This reform will be made an essential component of urban development schemes. Land-related reforms by state governments Land-related reforms and actions, both in rural and urban areas, will cover (1) land administration, planning and management, and (2) urban planning, usage and building bylaws. These will be incentivized for completion within the next 3 years through appropriate fiscal support. Rural Land related actions Rural land related actions will include (1) assignment of Unique Land Parcel Identification Number (ULPIN) or Bhu-Aadhaar for all lands, (2) digitization of cadastral maps, (3) survey of map sub-divisions as per current ownership, (4) establishment of land registry, and (5) linking to the farmers registry. These actions will also facilitate credit flow and other agricultural services. Urban Land related actions Land records in urban areas will be digitized with GIS mapping. An IT based system for property record administration, updating, and tax administration will be established. These will also facilitate improving the financial position of urban local bodies. Cities as Growth Hubs Working with states, our government will facilitate development of ‘Cities as Growth Hubs’. This will be achieved through economic and transit planning, and orderly development of peri-urban areas utilizing town planning schemes. Creative redevelopment of cities For creative brownfield redevelopment of existing cities with a transformative impact, our government will formulate a framework for enabling policies, market-based mechanisms and regulation. Long term capital gains Long term gains on all financial and non-financial assets, on the other hand, will attract a tax rate of 12.5 per cent. For the benefit of the lower and middle-income classes, FM proposed to increase the limit of exemption of capital gains on certain financial assets to Rs 1.25 lakh per year. Andhra Pradesh capital Central government has made concerted efforts to fulfil the commitments in the Andhra Pradesh Reorganization Act. Recognizing the state’s need for a capital, we will facilitate special financial support through multilateral development agencies. In the current financial year Rs 15,000 crore will be arranged, with additional amounts in future years. National Company Law Tribunals The IBC has resolved more than 1,000 companies, resulting in direct recovery of over Rs 3.3 lakh crore to creditors. In addition, 28,000 cases involving over Rs 10 lakh crore have been disposed of, even prior to admission. Appropriate changes to the IBC, reforms and strengthening of the tribunal and appellate tribunals will be initiated to speed up insolvency resolution. Additional tribunals will be established. Out of those, some will be notified to decide cases exclusively under the Companies Act. PM Surya Ghar Muft Bijli Yojana In line with the announcement in the interim budget, PM Surya Ghar Muft Bijli Yojana has been launched to install rooftop solar plants to enable 1 crore households obtain free electricity up to 300 units every month. The scheme has generated remarkable response with more than 1.28 crore registrations and 14 lakh applications, and we will further encourage it. Industrial Parks Our government will facilitate development of investment-ready “plug and play” industrial parks with complete infrastructure in or near 100 cities, in partnership with the states and private sector, by better using town planning schemes, said Sitharaman. Twelve industrial parks under the National Industrial Corridor Development Programme also will be sanctioned. Here is how real estate industry reacted to Budget 2024-25: Reducing the holding period for long-term capital gains from 36 to 12 months puts us at par with listed equity shares, further popularizing the REIT asset class in India. This move will further enhance the attractiveness of the REIT product, increasing investor participation. Aravind Maiya, chief executive officer, Embassy REIT The government's step towards digitizing India's archaic land documentation system is a game-changer, as transparent and accessible land records facilitate property transactions, reduce disputes, and encourage investment, benefiting both the real estate sector and the broader economy. However, some critical aspects remain unaddressed, such as GST rationalization for the real estate industry and the long-standing demand for industry status, which would facilitate access to funding. Murali Malayappan, chairman & managing director, Shriram Properties The increase in the affordable housing deduction for interest paid on loans is a positive change that will provide much-needed relief to homebuyers and boost the real estate market. Venkatesh Gopalakrishnan, director Group Promoter’s Office, MD & CEO - Shapoorji Pallonji Real Estate (SPRE) The comprehensive focus on efficient urban planning, including transit-oriented development and enhanced infrastructure for water supply, sewage, and waste management across 100 large cities, will elevate the quality of urban living. Ashwin Sheth, chairman and managing director, Ashwin Sheth Group Taking into consideration the popularity of hybrid working, the budget could have met a few expectations of coworking sector – particularly lower GST rate for small-scale coworking clients and the establishment of the single-window clearance system. An important requirement for the coworking industry has also been Lower/Concessional rate of TDS which will improve the working capital. Manas Mehrotra, founder, 315Work Avenue The development of industrial parks in 100 cities under the Industrial Corridor initiative is expected to create new real estate opportunities in these areas, potentially leading to the growth of commercial and residential properties. G Hari Babu, national president, NAREDCO The abolition of angel tax and reduction of corporate tax on foreign companies are particularly encouraging for start-ups and Global Capability Centers (GCCs), all of which have been big drivers of commercial real estate demand. Anshul Jain, chief executive - India, SE Asia & APAC Tenant Representation, Cushman & Wakefield We were expecting the announcements related to the fund outlay for Smart City Mission 2.0. The plan to develop TOD in 14 large cities will also definitely help in creating industrial and commercial hubs in these catchment areas. Digitalization of Land records in urban areas with GIS mapping will increase the transparency and provide the better administrative services. Pradeep Misra, chairman & MD, Rudrabhishek Enterprises The budget has also given ample attention to urban and rural development, with rental housing for industrial workers through the PPP model, interest subsidies for rental housing, and Transit-Oriented Developments. Anurag Mathur, CEO, Savills India The union budget 2024 however has not addressed some of the key demands of the real estate sector, including granting of industry status, input tax credit, reduction of GST and single window clearance. Additionally, there is only a marginal increase in savings on individual income tax under the new taxation regime. We urge the union government to reconsider the focus on the real estate sector to include these demand. Pavitra Shankar, managing director, Brigade Enterprises Innovative initiatives such as the digitization of land records, GIS mapping, and urban housing for the middle class, combined with workforce skilling, are expected to have a profound multiplier effect on the burgeoning real estate sector, currently experiencing double-digit growth. Moreover, the budget’s focus on sustainable development through solar and renewable energy, water and solid waste management aligns perfectly with the goal of climate-resilient real estate development. Niranjan Hiranandani, chairman, Hiranandani Group Mega allocation for the Hyderabad-Bengaluru industrial corridor and Vizag-Chennai corridor will boost growth along these corridors and consequently boost real estate growth there. Anuj Puri, chairman, ANAROCK Group We commend the Union Budget 2024-25 for its comprehensive approach towards job creation and boosting consumption, which are positive developments for the real estate sector. Prashant Sharma, president, NAREDCO Maharashtra The budget falls short of addressing the industry's core challenges. The sector requires a more supportive policy framework, including industry status, GST relief, and streamlined approvals. Source : The Economic Time INDIA

Property Being Sold of Rs 50 Lakh or More Involving Multiple Sellers, Buyers to Attract TDS

7/24/2024 12:54:00 PM

New Delhi, Jul 23 (PTI) TDS of one per cent will apply on sale of an immovable property valued at Rs 50 lakh and more, even if there are multiple buyers and sellers involved in the transaction. A clarification in this regard was provided by Finance Minister Nirmala Sitharaman in her Budget Speech amid cases of misinterpretation of tax provisions. The government on Tuesday said that one per cent TDS will be applicable for transfer of immovable property involving multiple sellers or buyers wherein the aggregate consideration is Rs 50 lakh or more. The finance minister mentioned the applicability of Tax Deduction at Source (TDS) in her 2024-25 Budget speech. In the budget document, the government said that Section 194-IA of the Act provides for deduction of tax on payment of consideration for transfer of certain immovable property other than agricultural land. An amendment will be made in the section to clarify this. "It is proposed to clarify that where there is more than one transferor or transferee in respect of an immovable property, then such consideration for transfer of the immovable property shall be the aggregate of the amounts paid or payable by all the transferees to the transferor or all the transferors for transfer of such immovable property," Finance Minister Nirmala Sitharaman said in her budget speech. As per the law, a transferee (buyer) is responsible for deducting tax at source on the amount paid to a seller or transferor for transferring immovable property to the buyer/transferee. As per the budget document, Sub-section (1) of Section 194-IA provides that any person responsible for paying a resident any sum by way of consideration for transfer of any immovable property should at the time of credit or payment of such sum to the resident, deduct an amount equal to one per cent of such sum or the stamp duty value of such property, whichever is higher, as income-tax thereon. The sub-section (2) provides that no deduction of tax should be made where the consideration for the transfer of an immovable property and the stamp duty value of such property, are both less than Rs 50 lakh. "It has been observed that some taxpayers are interpreting that the consideration being paid or credited refers to each individual buyer's payment rather than the total consideration paid for the immovable property. "Hence if the buyer is paying less than Rs 50 lakh, no tax is being deducted, even if the value of the immovable property and stamp duty value exceeds Rs 50 lakh. This is against the intention of the legislature," the document said. Accordingly, the government has proposed to amend sub-section (2) of section 194-IA to clarify that where there is more than one transferor or transferee in respect of an immovable property, then such consideration shall be the aggregate of amounts paid or payable by all the transferees to the transferor or all the transferors for transfer of such immovable property. The amendments will take effect from October 1, 2024. Source : The Economic Time INDIA

Your Home Loan Procedure Made Easy: A Step-by-Step Guide

7/24/2024 12:52:00 PM

Securing a home loan can be a pivotal step in achieving your dream of homeownership. Understanding the home loan process helps in making this journey smoother and more manageable. This comprehensive guide breaks down each step to help you navigate the loan process easily and hassle-free. Steps to apply for a Home Loan The home loan process in India involves several steps, from application to disbursement. Understanding each step can help you navigate the process more smoothly and increase your chances of approval. Here’s a detailed overview: 1. Research and Comparison Start by researching various banks and financial institutions that offer home loans. Compare interest rates, loan tenure, processing fees, and other terms and conditions. Use online tools and resources to get a sense of the best offers available. BASIC Home Loan has proprietary tech for best lender selection which means you wouldn’t have to go through all the hassle. 2. Check Eligibility Each lender has specific eligibility criteria, including age, income, credit score, and employment status. Make sure you meet these criteria before applying. Common requirements include: • Minimum age: 21 years • Maximum age at loan maturity: 60 years (salaried) or 65 years (self-employed) • Stable source of income • Good credit score (typically 700 or above) Suggested read: Home Loan Processing Time 3. Application Submission Once you choose a lender, you need to fill out a home loan application form and submit it along with required documents. These documents usually include: • Identity proof (Aadhar card, PAN card, passport, etc.) • Address proof (utility bills, rental agreement, etc.) • Income proof (salary slips, bank statements, IT returns) • Property documents (title deed, sale agreement) • Employment proof (employment letter, business proof for self-employed) 4. Processing Fee Payment Lenders charge a non-refundable processing fee to cover the administrative costs of processing the loan. This fee is typically a percentage of the loan amount. Suggested read: Home Loan Processing Fees of All Banks Unveiling the Fee Structure: The processing fee usually ranges from 0.25% to 0.50% of the requested loan amount. Let's say you've applied for a home loan of Rs. 15 lakh. The processing fee would be Rs. 3,750 at 0.25% and Rs. 7,500 at 0.50%. Remember, this fee may include a commission for the agent handling your home loan process but don't worry. Many banks have a flexible fee structure that can be negotiated. It's worth trying to discuss and bargain the processing fee to get the best possible deal. Keep up the enthusiasm and determination as you progress towards becoming a homeowner! 5. Verification and Assessment The lender will verify the information provided in your application and assess your creditworthiness. This includes checking your credit score, verifying your employment and income, and evaluating the property’s value. The lender may also conduct a physical inspection of the property. 6. Sanctioning the Loan If the lender is satisfied with the verification and assessment, they will issue a sanction letter. This letter outlines the approved loan amount, interest rate, loan tenure, and other terms and conditions. Review the sanction letter carefully and accept it if you agree with the terms. 7. Legal and Technical Check The lender will conduct a legal check to ensure that the property has a clear title and is free from any legal disputes. A technical check will also be performed to assess the construction quality and value of the property. Suggested read: Home Loan Disbursement Process 8. Loan Agreement and Disbursement After the legal and technical checks, you will need to sign the loan agreement. Once the agreement is signed, the loan amount will be disbursed. The disbursement can be in full or in stages, depending on the type of property and construction status. Source : The Economic Time INDIA

Budget 2024 : FM Encourage States to Stamp Duty Reduction On Property Purchase on Lowering Rate for Women

7/23/2024 4:11:00 PM

New Delhi, July 23 (PTI) States charging high stamp duties on purchase of properties will be encouraged to bring down the rates, Union Finance Minister Nirmala Sitharaman said on Tuesday, asserting that the reform will be a key component in urban development schemes. She also asked states to consider further lowering stamp duties for properties bought by women. "We will encourage states which continue to charge high stamp duty to moderate the rates for all, and also consider further lowering duties for properties purchased by women. This reform will be made an essential component of urban development schemes," Sitharaman said. Stamp duty is a tax imposed by state governments on the sale of property/property ownership. It is payable under Section 3 of the Indian Stamp Act, 1899. The duty is payable at the time of registration of property if a property is acquired by way of sale deed/conveyance deed/gift deed. For states, stamp duty is one of the major streams for generating funds to undertake development works. Source : The Hindustan Times INDIA

Budget 2024 : Government Announce that Rs 10 Lakh Crore Invested in PMAY

7/23/2024 4:10:00 PM

Finance Minister Nirmala Sitharaman today announced a Rs 2.2 lakh crore central assistance to boost development of affordable homes in urban areas - a segment that has been struggling for years. The FM, while tabling the budget for 2024-25 at the Lok Sabha said that under the second instalment of Pradhan Mantri Awas Yojana-Urban (PMAY-U) 1 crore new homes will be built to support the needs of poor and mid-income households. “Under the PM Awas Yojana Urban 2.0, housing needs of 1 crore urban poor and middle-class families will be addressed with an investment of ₹ 10 lakh crore. This will include the central assistance of ₹ 2.2 lakh crore in the next 5 years. A provision of interest subsidy to facilitate loans at affordable rates is also envisaged,” she said at the Parliament. The scheme part of the government’s plan to build 3 crore affordable homes over the next five years in urban and rural areas. These homes, apart from being subsidised, also includes government support for availing home loans at a lower interest rate. “Three crore additional houses under the PM Awas Yojana in rural and urban areas in the country have been announced, for which the necessary allocations are being made,” Sitharaman further added. The move has received wide spread appreciation from the industry stakeholders, including realtors. “The government's commitment to making housing more affordable, with a Rs 2.2 lakh crore push under the PM Awas Yojana-Urban, is a significant step forward. Addressing the housing needs of one crore poor and middle-class families with an investment of ₹10 lakh crore, including central assistance of ₹2.2 lakh crore over the next five years, reflects a robust and inclusive approach to urban development,” says Prashant Sharma, President, NAREDCO Maharashtra. According to Boman Irani, President of real estate industry body CREDAI, the measures are expected “to enhance ease of living and dignity for crores of Indians. These announcements reiterate the government's focus on ‘housing for all’”. Samantak Das, Chief Economist and Head of Research & REIS, India, JLL says, “one crore homes in urban areas as well as considering bringing back interest subsidies is a positive step which will support the affordable housing segment”. Source : Money Control INDIA

Budget 2024 : FM Announce that 100 Cities to be Enlarge with Industrial Parks

7/23/2024 4:08:00 PM

Focusing on India’s industries, Union Finance Minister Nirmala Sitharaman on Tuesday, announced that twelve new industrial parks will be developed under the National Industrial Corridor Development programme in her Budget speech for 2024-25. These parks will be equipped with complete infrastructure and ‘plug and play’ parks will be sanctioned in or near 100 cities, said Ms, Sitharaman. “Industrial parks with complete infrastructure in or near 100 cities will be developed. Twelve industrial parks under the National Industrial Corridor Development programme will also be sanctioned,” said Ms. Sitharaman. This year’s budget has nine priorities such as - agriculture, employment, human development, energy security, manufacturing, innovation, infrastructure and next generation reforms. The National Industrial Corridor Development Programme is Centre’s infrastructure programme to new industrial cities as “Smart Cities”, equipped with new technologies. The oldest such corridors are Delhi Mumbai Industrial Corridor (DMIC) and Western Dedicated Freight Corridor, which are India’s transportation backbone. This is the seventh budget speech presented by Ms. Sitharaman and her second term as Union Finance Minister. After being awarded the people’s mandate for the third term in June, this is also the first budget of the National Democratic Alliance (NDA) after the 2024 Lok Sabha elections. Source : The Hindu INDIA

Union Budget 2024 : Government Disclose Transit-Oriented Development Plan For Large Cities

7/23/2024 4:08:00 PM

Union finance minister Nirmala Sitharaman on July 23 presented the annual budget in the Lok Sabha with a focus on Viksit Bharat (developed India) and announced the major priorities for it. She said the people have given a unique opportunity to BJP-led NDA government to take the country on the path of strong development and all-round prosperity. “In the interim budget, we promised to present a detailed roadmap for our pursuit of ‘Viksit Bharat’. In line with the strategy set out in the interim budget, this budget envisaged sustained efforts on nine priorities for generating ample opportunities for all,” said the finance minister. Here's the list of priorities set by Centre for Viksit Bharat Urban development: Government has encouraged states to lower stamp duties for properties purchased by women. It also announced Transit Oriented Development plans for 14 large cities with a population above 30 lakh and promote water supply, sewage treatment and solid waste management projects and services for 100 large cities through bankable projects. The finance minister said that needs of one crore urban poor and middle-class families will be addressed with an investment of ₹10 lakh crore. Infrastructure: The government said it has set the provision of ₹11.11 lakh crore for infrastructure (3.4% of GDP), ₹1.5 lakh crore to states as long term interest free loans to support resource allocation. Meanwhile, phase four of Pradhan Mantri Gram Sadak Yojana (PMGSY) will be launched to provide all weather connectivity to 25,000 rural habitations. Tourism: Centre has announced development of Vishnupad temple corridor and Mahabodhi temple corridor modelled on Kashi Vishwanath temple corridor. It said comprehensive development initiative for Rajgir will be undertaken which holds religious significance for Hindus, Buddhists and Jains. The development of Nalanda as a tourist centre besides reviving Nalanda University to its glorious stature is priority announced the finance minister. She said government is committed to develop Odisha’s scenic beauty, temples, monuments, craftsmanship, wildlife sanctuaries, natural landscapes and pristine beaches making it an ultimate tourism destination. Rural and urban land related actions: Government said the land records in urban areas will be digitised with GIS mapping and it will create unique land parcel identification number for all lands. The government has also proposed survey of map sub-divisions as per current ownership Productivity and resilience in agriculture: The government announced that one crore farmers across the country will be initiated into natural farming, supported by certification and branding in next 2 years. It also proposed to establish 10,000 need-based bio-input resource centres across the country. Moreover, financing for Shrimp farming, processing and export will be facilitated through National Bank for Agriculture and Rural Development (NABARD). Employment and skilling: - The government has announced one month wage to new entrants in all formal sectors in three instalments up to ₹15,000, which is expected to benefit 210 lakh youth in the country. Government will also reimburse EPFO contributions of employers up to ₹3,000 per month for two years for all new hires and is expected to generate 50 lakh jobs. Energy security: A joint venture between NTPC and BHEL will set up a full scale 800MW commercial plant said Centre and a announced that financial support for shifting of micro and small industries to cleaner forms of energy. For electricity storage and facilitation of smooth integration of the growing share of renewable energy, government is planning to bring in pumped storage policy. Irrigation and flood mitigation: Finance minister on July 23 also annouced financial support for projects with estimated cost of ₹11,500 crore such as the Kosi-Mechi intra-state link and 20 other ongoing and new schemes. It also extended assistance for flood management and related projects in Assam, Sikkim and Uttarakhand, besides assistance for reconstruction and rehabilitation in Himachal Pradesh. Innovation, research and development: The Centre announced operationalisation of the Anusandhan National Research Fund for basic research and prototype development, private sector-driven research and innovation at commercial scale with a financing pool of ₹1 lakh crore. It also announced to set up space economy, a a venture capital fund of ₹1,000 crore. Source : The Hindustan Times INDIA

Budget 2024 : Rs 26000 Crore Road Project Expected For North India

7/23/2024 4:07:00 PM

Budget 2024 - Road Connectivity Projects For Bihar: Bihar was anticipating a special state status to be announced in the Union Budget 2024. However, it will have to be content with only a special economic package. Finance Minister Nirmala Sitharaman announced on Tuesday a budget of Rs 26,000 crore for various road projects in Bihar, including some expressways and bridges to boost infrastructure. Additionally, an industrial node is to be developed at Gaya on the Amritsar-Kolkata Industrial Corridor. In her budget speech, Nirmala Sitharaman said, "On the Amritsar Kolkata Industrial Corridor, we will support development of an industrial node at Gaya. This corridor will catalyze industrial development of the eastern region. The industrial node at Gaya will also be a good model for developing our ancient centres of cultural importance into future centres of modern economy." -- Patna-Purnea Expressway -- Buxar-Bhagalpur Expressway -- Bodhgaya, Rajgir, Vaishali & Darbhanga spurs -- Additional 2-lane bridge over river Ganga at Buxar "We will support development of road connectivity projects, namely (1) Patna-Purnea Expressway, (2) Buxar-Bhagalpur Expressway, (3) Bodhgaya, Rajgir, Vaishali and Darbhanga spurs, and (4) additional 2-lane bridge over river Ganga at Buxar at a total cost of ` 26,000 crore," FM Nirmala Sitharaman said. Finance Minister Nirmala Sitharaman also announced new airports, medical colleges, and sports infrastructure for Bihar. "Power projects, including setting up of a new 2400 MW power plant at Pirpainti, will be taken up at a cost of Rs 21,400 crore. New airports, medical colleges, and sports infrastructure in Bihar will be constructed," she added. Additionally, the central government will formulate a plan, Purvodaya, for the all-round development of the eastern region of the country, covering Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh. Nirmala Sitharaman said, "This will cover human resource development, infrastructure, and generation of economic opportunities to make the region an engine to attain Viksit Bharat." Source : Zee News INDIA

Budget 2024 Update Government Focus on Spiritual Tourism

7/23/2024 4:05:00 PM

Budget 2024: As Finance Minister Nirmala Sitharaman unveiled her ambitious plans for the tourism sector in Budget 2024, highlighting significant reforms aimed at rejuvenating historical and cultural sites, the spotlight turned to several iconic destinations across India. Among the jewels mentioned, Nalanda, Gaya, and Odisha emerged prominently, each boasting a rich tapestry of history, spirituality, and natural splendor. Nalanda, situated in the eastern Indian state of Bihar, stands as a testament to India’s profound intellectual heritage. Once a thriving center of Buddhist learning from the 5th to 12th centuries, Nalanda University attracted scholars and students from across Asia, making it one of the world’s earliest residential universities. Today, the ruins of Nalanda evoke a sense of awe and reverence, with its majestic structures and serene surroundings offering visitors a glimpse into India’s scholarly past. The proposed reforms aim to enhance infrastructure around Nalanda, ensuring easier access for tourists and scholars alike. Investments in preservation efforts and the development of visitor amenities are set to breathe new life into this UNESCO World Heritage site, fostering greater appreciation and understanding of India’s cultural legacy. Adjacent to Nalanda lies Gaya, another sacred destination revered by Hindus and Buddhists alike. Gaya is renowned for its association with the ancient ritual of pind daan, where Hindus perform rites for the salvation of departed souls. Buddhists also regard Gaya as a significant site, as it is believed to be the place where Gautama Buddha attained enlightenment under the Bodhi tree. The region’s spiritual ambiance and historical resonance attract pilgrims and tourists seeking solace and enlightenment. Sitharaman’s initiatives aim to enhance facilities for pilgrims, ensuring that Gaya remains a welcoming sanctuary for spiritual seekers from around the globe. Located in Gaya, Bihar, the Vishnupad Temple is dedicated to Lord Vishnu and holds immense significance for Hindus. The temple derives its name from the sacred footprint imprinted on a solid rock, believed to be that of Lord Vishnu himself. According to Hindu mythology, it is at this spot that Lord Vishnu stepped while he was incarnated as Vamana, marking his victory over the demon king Bali. Devotees flock to the temple to perform rituals for their ancestors, believing that offerings made here can provide salvation to departed souls. The temple complex exudes an aura of devotion and spiritual reverence, with its ancient architecture and serene ambiance offering visitors a glimpse into India’s deep-rooted religious traditions. Bodh Gaya, also in Bihar, is renowned as the place where Prince Siddhartha attained enlightenment and became Gautama Buddha. The Mahabodhi Temple stands as a magnificent symbol of this spiritual awakening, built adjacent to the sacred Bodhi tree under which Buddha meditated and attained nirvana. Declared a UNESCO World Heritage site, the Mahabodhi Temple complex includes not only the temple itself but also various stupas, monasteries, and meditation parks. Pilgrims and tourists from all over the globe visit Bodh Gaya to pay homage to Buddha and to experience the tranquility and serenity that permeates the atmosphere of this holy site. Moving to the eastern coastal state of Odisha, Sitharaman’s budgetary focus also embraced the state’s abundant natural beauty and cultural richness. Odisha offers a diverse tapestry of attractions, including ancient temples, vibrant festivals, pristine beaches, and wildlife sanctuaries teeming with exotic flora and fauna. The Sun Temple at Konark, a UNESCO World Heritage site renowned for its architectural grandeur and intricate stone carvings, epitomizes Odisha’s cultural splendor. Cuttack, known for its rich history and vibrant silver filigree work, and Puri, with its annual Rath Yatra festival drawing millions of devotees, further underscore the state’s cultural vibrancy. Beyond its cultural heritage, Odisha’s coastline stretches languidly along the Bay of Bengal, offering sun-kissed beaches like Puri and Chandrabhaga, where travelers can unwind amidst tranquil shores and azure waters. The state’s lush forests and wildlife sanctuaries, such as Simlipal and Bhitarkanika, provide sanctuary to endangered species like the Bengal tiger and olive ridley turtles, presenting nature enthusiasts with ample opportunities for exploration and conservation awareness. Varanasi, often called the spiritual capital of India, is home to the Kashi Vishwanath Temple, dedicated to Lord Shiva. Situated on the banks of the sacred river Ganges, this temple is one of the twelve Jyotirlingas, believed to embody the manifestation of Lord Shiva as a pillar of light. The temple has a history dating back several centuries, with successive rulers and devotees contributing to its grandeur and spiritual significance. Varanasi itself is a city steeped in mythology and tradition, where Hindu pilgrims come to bathe in the holy waters of the Ganges and perform rituals that are believed to cleanse the soul and grant liberation from the cycle of rebirth. Sitharaman’s reforms aim to bolster infrastructure and accessibility across Odisha’s tourist circuits, ensuring sustainable development while preserving the state’s natural and cultural treasures for generations to come. As India charts its course towards economic recovery and growth, the tourism sector emerges as a pivotal engine for job creation, cultural preservation, and sustainable development. Nalanda, Gaya, and Odisha exemplify the rich tapestry of experiences awaiting travelers, scholars, and pilgrims alike, offering a profound journey through India’s historical, spiritual, and natural heritage. With renewed investment and strategic reforms, Sitharaman’s vision promises to unlock the full potential of these destinations, inviting the world to rediscover India’s cultural gems and forge lasting connections with its storied past and vibrant present. As visitors embark on their own odyssey through these timeless landscapes, they will undoubtedly find themselves enriched by the diversity and beauty that define India’s tourism landscape. Source : The Economic Time , Financial Express INDIA

Budget 2024: Long Term Capital Profits Tax Rise From 10% to 12.5%

7/23/2024 4:03:00 PM

The exemption limit for long-term capital gains tax has been increased to Rs 1.25 lakh from Rs 1 lakh. The budget also announced that listed financial assets held for more than a year will be classified as long-term. The Union Budget for 2024-25 has hiked the long-term capital gains tax (LTCG) on all financial and non-financial to 12.5 percent from 10 percent, while short-term capital gains tax (STCG) on some assets would be 20 percent. Further, the exemption limit for long-term capital gains tax has been increased to Rs 1.25 lakh from Rs 1 lakh. The budget also announced that listed financial assets held for more than a year will be classified as long-term. "Short-term gains on certain financial assets shall henceforth attract a tax rate of 20 percent, while that on all other financial assets and all non-financial assets shall continue to attract the applicable tax rate," Finance Minister Nirmala Sitharaman said during her Budget speech on July 23. Long-term gains on all financial and non-financial assets, on the other hand, will attract a tax rate of 12.5 percent. Further, for the benefit of the lower and middle-income classes, the finance minister proposed to increase the limit of exemption of capital gains on certain financial assets to Rs 1.25 lakh per year. Also, listed financial assets held for more than a year will be classified as long term, while unlisted financial assets and all non-financial assets will have to be held for at least two years to be classified as long-term. Additionally, unlisted bonds and debentures, debt mutual funds and market linked debentures, irrespective of holding period, however, will attract tax on capital gains at applicable rates. "On the macro side, the budget's approach of fiscal glidepath along with continual investment in infrastructure as well as some reduction in taxes for consumers is welcome," said Harish Krishnan, Co-Chief Investment Officer & Head Equity, Aditya Birla Sun Life AMC Ltd. "However, these announcements have been overshadowed by changes made in terms of capital gains taxes. This certainly increases the hurdle rate for investors in financial assets, and hence there is a sentimental negative. Markets had gone up in the run-up to the event over the last few months, and hence, could result in some cooling off in financial markets before the focus moves back to corporate earnings, and the strength of Indian economy," Krishnan added. Further, Sitharaman in Budget 2024 proposed to increase the rates of Securities transaction tax (STT) on the sale of an option in securities from 0.0625 per cent to 0.1 per cent of the option premium, and on the sale of a futures in securities from 0.0125 per cent to 0.02 per cent of the price at which such futures are traded. Reacting to the tweaks in the capital gains structure, Indian equity markets crashed with Sensex falling more than 800 points. The index recovered a bit later to trade around 600 points in the red. On the increase in capital gains on financial assets, Sandeep Chilana, Managing Partner, CCLaw, said, “The FM has proposed to increase the rate of tax on both short-term and long- term gains for certain financial assets. In the past few years, substantial investments have been made by retail investors in financial markets. Change in the rates of tax will likely have a significant impact on the sentiment of retail investors with respect to consistency in tax policy and doubt that even higher taxes may be imposed in future.” Currently, equity shares or units of equity funds held for more than a year are subject to capital gains tax at 10 percent if LTCG exceeds Rs 1 lakh in a financial year. Source : Money Control INDIA

Economic Survey 2023-2024:- Nearly 1.25 Lakh Accusation Resolute by Real Estate Regulatory Authorities of Various State

7/23/2024 12:18:00 PM

As per the 2023-24 Economic Survey tabled by Union Finance Minister Nirmala Sitharaman in the Parliament on July 22, a total of 1,24,947 cases were settled by Real Estate Regulatory Authorities of various states as of July 1, 2024. The Economic Survey 2022-23 had stated this figure at over 1.06 lakh, indicating under 19,000 real estate project disputes were resolved during the financial year 2023-24. The survey further highlighted that barring Nagaland, all states and union territories in India have notified rules under the Real Estate (Regulation and Development) Act, 2016. Nagaland is currently in the process of notifying the rules, it added. “As of July 1, 2024, 32 States and UTs have set up the Real Estate Regulatory Authority, and 1,24,947 complaints have already been disposed of,” the document said. The Real Estate (Regulation and Development) Act, 2016 was enacted to boost transparency, citizen-centricity, accountability and financial discipline within the real estate sector in India. It mandates establishment of a real estate regulatory authority in each State/UT by the appropriate government and registration of real estate projects and real estate agents with the regulatory body thereafter. The survey also added that following the enactment of RERA, 2016, India was ranked 36th in the Global Real Estate Transparency Index in 2022. As per details in the latest survey, over 30,000 real estate projects and 16,947 property agents were registered under the real estate regulatory authorities of various states and union territories during the 2023-24 fiscal year. “As of July 1, 2024, over 1,30,186 real estate projects and 88,461 real estate agents have been registered under RERA,” the survey document noted. Before RERA was enacted, there were many cases of real estate developers not delivering flats or homes despite full payments from homebuyers. To address this, under RERA, it is mandated that 70% of funds collected from homebuyers for a project must be maintained in a separate bank account dedicated to project construction and land costs," the survey said. RERA has also made it mandatory for developers and project promoters to make all necessary disclosures about projects, including permissions secured from authorities, date of launch, promised date of delivery, project specifications, and amenities. Homebuyers' interests are also protected as only the projects (above 500 square metres and above eight apartments) registered with RERA can be launched, thereby obviating the possibility of any misrepresentation or false promises by the developers, the survey said. Overall, the Economic Survey 2023-24 emphasised the recovery of the Indian real estate sector following the Covid-19 pandemic, alongside projecting an encouraging outlook for the segment. "The outlook for the real estate sector is encouraging. With increasing urbanisation, the housing industry is poised for a significant transformation," it noted. Source : The Economic Time INDIA

Bhutani Group Acquires Majority Stake in WTC Noida Revenue-Sharing Deal

7/23/2024 12:17:00 PM

Noida's Bhutani Group has acquired a majority stake in WTC Noida, a company licensed to develop 13 World Trade Centers across India, in a revenue-sharing deal that will ensure the completion of stalled projects, three people aware of the development said. Five of these WTCs, located in Noida , Chandigarh, Gurugram , and Gift City are at various stages of construction and will require at least ₹3,000 crore. "The existing company was struggling to complete the work. Although parts of these projects were delivered and operational, the company needed an equity infusion to speed up construction. Bhutani Group has come on board as a partner to boost sales, construction, and overall strategy," said a person familiar with the development. Together, the projects have over 30 million square feet of leasable area. The World Trade Centers Association (WTCA) licenses developers in various countries to use the brand name and services. "All the projects initiated by WTC Noida are net worth positive, and the target for the next few months is to give active momentum to each and every project and ensure timely delivery. For future projects, which are in cities like Varanasi, Amritsar, and Lucknow, a call will be taken at a later stage," said another person. Bhutani Group recently won the bid to develop Film City project of the Uttar Pradesh government. "This strategic investment spans across various projects, focusing on occupier satisfaction and job creation. We are also looking forward to working across new geographies as a part of this acquisition, with new launches planned very soon," said a Bhutani group spokesperson. The WTCA did not respond to the email query. The World Trade Center is looking to expand its presence in India, with the Indian market and the office market seeing stable growth amidst global uncertainties. WTCA plans to expand its presence in India by adding 10 more trade centres in the next five to seven years. It expects to have over 50 World Trade Centers within the next 5-7 years, up from the current 40. The association currently has licenses in 40 cities in India, but not all of them have a building. Source : The Economic Time INDIA

Promoters Must Publish Realty Project QR Codes in Brochures, Ads: UP RERA

7/20/2024 2:06:00 PM

NOIDA: Uttar Pradesh real estate regulator UPRERA on Thursday said it will assign a unique QR code to each new project at the time of registration and promoters need to publish them in their brochures and advertisements. The step is aimed at promoting transparency in the sector, the Uttar Pradesh Real Estate Regulatory Authority (RERA) said, noting that home buyers at times don't have access to verify amenities and other details of projects and have to solely rely on advertisements done by promoters. "Anybody desirous to make investment in a project can simply scan this code with his mobile phone, readily get all the details of the project from the portal of UP RERA and verify the information about the projects provided by the promoter in the advertisements," it said in a statement. UPRERA has also made it mandatory for promoters to publish project QR codes in all documents shared with the allottees, such as booking forms, allotment letters, and BBAs (builder-buyer agreements). Through the QR code, an allottee will be able to get all details related to the project, such as land documents, approved layouts and maps, project specifications and amenities, start and completion dates, bank accounts, promoters, co-promoters, registered agents, quarterly progress report (QPR), occupancy certificate or completion certificate, other requisites, and NOCs. RERA said it had observed that promoters advertise their projects extensively, but home buyers have no easily accessible medium of verifying the features, amenities, and other details mentioned in such advertisements. "But henceforward, the same advertisement will become the source of verification of the information relating to the project...," it added. UP RERA chairman Sanjay Bhoosreddy, said: "Promotion and advertisement of the project is the strongest instrument to promote the sale of real estate properties, but RERA has to ensure that no innocent buyer is deceived through the advertisements." Source : The Economic Time INDIA

UltraTech Cement Reports Net Profit of Rs 1,696 Crore in Q1 FY25

7/20/2024 12:50:00 PM

UltraTech Cement, the country’s largest cement maker, on Friday reported a flat net profit for the first quarter of financial year 2024-25 (Q1FY25), a period marked by weak demand which the firm attributed to completion of key infrastructure projects and election lull. Its revenue too came in flat during the period. For the quarter under review, the cement company reported a consolidated net profit of Rs 1,696.59 crore, against Rs 1688.45 crore a year ago. Revenue for the quarter was up 2 per cent at Rs 18,069 crore. In a Bloomberg poll, 13 analysts estimated a revenue of Rs 18354 crore and a net income adjusted of Rs 1820 crore. On a sequential basis, UltraTech’s net profit fell 25 per cent. Profit before interest, depreciation and tax, the company said, was at Rs 3,205 crore compared to Rs 3,223 crore a year ago. Domestic cement sales volume, the company said, registered a six per cent growth from a year back. The company’s presentation noted that the sales realisation declined by 5.7 per cent from a year ago and 2.4 per cent sequentially. The company said that demand from the infrastructure sector either declined or was muted for all markets except Central India, in the June-24 ended quarter. In its presentation, UltraTech noted completion of key infrastructure projects and election lull as contributors to the weak demand. UltraTech also noted overall sector volumes in India’s south market witnessed a decline across segments, owing to labour shortage impact on housing demand, early onset of monsoon across regions except in Karnataka and Tamil Nadu and infrastructure demand decline due to funding issues. In terms of costs, the company said, energy costs were lower by 17 per cent year-on-year (Y-o-Y), mainly on account of reduced fuel prices. Raw material costs marginally rose by a per cent, the company added, attributable to the increase in the cost of fly ash and slag. With the aim to increase capacity to close to 200 million tonnes, UltraTech has undertaken multiple phases of expansion. Sharing an update on these planned expansions, the company said, it has further added 8.7 million tonne per annum (MTPA) capacity during the quarter, across Tamil Nadu, Chhattisgarh, Andhra Pradesh, Maharashtra and Odisha. With this, the company said, total grey cement capacity of the company stands at 149.5 MTPA in India. UltraTech said, commercial production for new capacities of the second phase of 22.6 MTPA announced in June, is expected to go on-stream in a phased manner by the current and the next financial year. For the third phase of expansion, announced in October, the company said, major orders to key technology suppliers have already been placed and civil work has also commenced at some locations. The company plans to end the current financial year with 157.0 MTPA capacity. In its outlook for the sector and the company, the press statement said, UltraTech’s growth trajectory mirrors India’s growth story. Its scale will further enable the company to service the growing demand for cement across the country. In its presentation, the company noted, continued focus on infrastructure development such as roads, rail, metros, etc. will be the key cement demand levers for FY25. Gross debt for the company, as of June, was at Rs 13,179 crore, sequentially higher from Rs 10,298 crore in March this year. Source : The Economic Time INDIA

M3M’s Land in Gurugram Now Valued at Rs 300 Crore

7/20/2024 12:48:00 PM

The Enforcement Directorate (ED) has provisionally attached immovable properties spread over 88 acres and valued at about ₹300 crore belonging to real estate developer M3M India Infrastructure Private Ltd under Prevention of Money Laundering Act (PMLA). An ED statement said that these properties are in the form of land parcels located in Basharia village of Harsaru tehsil in Gurugram. The agency in its statement said that they had initiated investigation on the basis of a 2019 first information report registered by Central Bureau of Investigation under sections of Indian Penal Code and Prevention of Corruption Act against the then chief minister Bhupinder Singh Hooda and the then director town and country planning and 15 real estate development companies including RS Infrastructure Pvt Ltd. However, Hooda and the then director town and country planning were not arraigned as accused in the chargesheet filed by the CBI in a Panchkula court in 2021. “The case involved cheating various landowners, the public at large and the state of Haryana, by issuing a notification under Section 4 of the Land Acquisition Act and subsequently under Section 6 of Act for the acquisition of lands of respective landowners which compelled landowners to sell their land to the said coloniser companies at a lower price than the prevailing price. Additionally, they fraudulently and dishonestly obtained Letter of Intents / licenses on the notified land, causing loss to the respective landowners, the public at large, and Haryana government, while wrongfully gaining for themselves,’’ the ED statement said. The ED investigation revealed that RS Infrastructure Private Limited, a company beneficially owned by Basant Bansal and Roop Bansal, the promoters of M3M group, colluded with the persons mentioned in the FIR and unlawfully got approved licenses for land measuring 10.35 acres for establishing a commercial colony by classifying their case as “a case of extreme hardship” without legal basis. Upon securing licenses to establish a commercial colony, the promoters of RS Infrastructure did not develop a commercial colony which was a precondition for obtaining the licenses, the ED said. The ED added that RS Infrastructure later sold the company’s shares and assets, including the said licensed land, for a staggering sum of ₹726 crore to Lowe Realty Private Limited, an associated entity of Religare Group. “This fraudulent activity of obtaining the said licenses illegally has resulted in generation of proceeds of crime to the tune of ₹300 crore, which were subsequently diverted from RS Infrastructure to the promoters of RS Infrastructure into their bank accounts and to the bank accounts of their family members and subsequently utilised for operational and business expenses of M/s M3M group companies,” the ED said in a statement. Source : The Economic Time INDIA

Alphacorp Put Money Into Rs 350 Crore in Housing Project in Gurugram

7/18/2024 12:41:00 PM

Realty firm Alphacorp will invest Rs 350 crore to develop a luxury housing project in Gurugram as part of its expansion plan amid strong consumer demand. Without divulging the name of the partner, Alphacorp said it has tied up with an entity that owns two land parcels of nearly 2.4 acre each, located in Sector 15, Part 2, Gurugram. "We will develop a total of 200 apartments on these two land parcels," said Santosh Agarwal, Executive Director and CFO of Alphacorp. On one parcel of 2.38 acre, the company has launched luxury high-rise project 'Alphacorp SKY1' comprising 100 units. The price is Rs 5 crore per unit. The project on the second plot will also be launched in the next 2-3 months. When asked about the project cost, Agarwal said the total investment is estimated at Rs 350 crore excluding land cost. He said the investment will be funded through internal accruals and bank loans, if necessary. "Gurugram, regarded as the Millennium City, exemplifies rapid infrastructure growth and dynamic urban development. This bustling hub attracts a diverse range of residents, businesses, and investors," Agarwal said. The demand for luxury housing has been very strong in Gurugram in the past two years, he said. Since its inception, Alphacorp has developed integrated townships, luxurious condominiums, corporate hubs, retail centers, and industrial parks across the National Capital Region (NCR), Punjab, Uttar Pradesh, and Gujarat. Agarwal said the company has developed around 12 projects so far while six projects are being constructed. Source : The Economic Times INDIA

UP-RERA Issued Public Notice For Noida, Greater Noida and 18 Builders to Appear in Online Hearings

7/18/2024 12:40:00 PM

Noida, Jul 17 (PTI) Uttar Pradesh Real Estate Regulatory Authority (UP RERA) on Wednesday issued a public notice in newspapers for the parties to appear and present their matter in an online hearing of 32 complaints, noting that stakeholders have skipped "several dates" and warned of "unilateral decision" in case of any further skips. Of the total such hearings, 19 are to be held at the regulatory authority's Head Office bench in Lucknow and 13 at the regional office bench in Gautam Buddh Nagar, it said in a statement. "The parties who do not appear on several dates in the hearing of various benches of UP RERA are being given a last chance to appear through public notice in newspapers. Since they do not appear in the hearing, the grievance of the complainant / party is not being resolved and their hearing has to be rescheduled for the next date, which is against the objectives of the RERA Act and against the interests of the allottee or other stakeholders," the UP RERA said. Complaints related to Head Office, Lucknow belong to Vasundhara Lotus Infratech Pvt Ltd, Polars Infradevelopers Ltd, Yazdan Constructions, Shinecity Infra Projects Pvt Ltd, Gayatri Developers Pvt Ltd, Wealth Matra Infracon Pvt Ltd, Precious Buildtech Pvt Ltd, Hydes Infra Projects Pvt Ltd and two more (individual home buyers), it said. Complaints related to Regional Office, Gautam Buddh Nagar belong to Satya Homes Pvt Ltd, Divyanka Homes Pvt Ltd, New Okhla Industrial Development Authority (NOIDA), Greater Noida Industrial Development Authority, Logix Infra Developers Pvt. Ltd., Ashoka Priyansh Builders Pvt Ltd, Shamiah International Builders Pvt Ltd, Syore Infraprojects Pvt Ltd, VXL Realtors Pvt Ltd and one more (a home buyer), it said. "To join the hearing through e-court, the parties will be sent a link on their registered mobile number and email ID two days before the scheduled hearing date. By clicking on this link, the parties can join the hearing from any place. It is to be noted that UP RERA is hearing the complaints of home buyers online as per the e-court model, in which no party is required to come to the office of UP RERA," the UP RERA said. "If the promoters do not appear in the hearing even after this public notice, then under the provisions of the RERA Act, the benches will give a unilateral decision keeping in mind the interests of the complainants/allottees, for which the promoters/ parties themselves will be responsible," it warned. Source : Times of India INDIA

Enforcement Directorate Registered PMLA Case Opposed to ATS Group

7/18/2024 12:39:00 PM

The Lucknow zonal office of the enforcement directorate (ED) has registered a case under the prevention of money laundering Act (PMLA), 2002, against ATS Group of Companies. The case was registered after homebuyers in Noida faced delays and issues with projects developed by the group, including the developer’s land dealings worth over Rs 3,400 crore. The case was registered based on FIRs against the company directors who had lured investors to invest in their residential project in Noida, with promises of significant returns through a buy-back scheme. As per the scheme, the firm had agreed to buy back the allotted apartments at a premium after 36 months and issued post-dated cheques, which bounced. TNN We also published the following articles recently Case registered for alleged stone pelting on passenger train in Jalgaon Government Railway Police registers case after viral video shows alleged stone pelting on Bhusawal Nandurbar passenger train. Authorities investigating the incident. No injuries reported. Stay updated for more information. 3 FIRs against former Neeri director, scientists for abuse of office, cartelization & collusion in biddings Read about the recent CBI investigations into corruption allegations at CSIR-Neeri involving former officials and private firms. Discover details of the tender procedures and equipment procurement issues that have been uncovered. Lucknow University academic session back on track after 3 years Discover the latest updates from Lucknow University as they gear up to kickstart the academic session for undergraduate and postgraduate courses. Find out the new schedule and plans in place to ensure a smooth start for students in the upcoming academic year. Source : Times of India INDIA

SC Commands No Persistent Action to be Taken Against NCR Homebuyers

7/18/2024 12:37:00 PM

In a relief to many homebuyers who booked flats under the subvention plan and have not received possession of their flats in various projects across the NCR due to inordinate delays by developers, the Supreme Court has directed that no coercive action be taken against them by banks or builders regarding payment of EMI, and no complaints shall be entertained against them in cheque bounce cases. Under the subvention scheme, banks disburse the sanctioned amount directly to the accounts of builders, who are then to pay EMIs on the sanctioned loan amount until possession of the flats is handed over to the sanctioned loan amount until possession of the flats is handed over to the homebuyers. As builders started defaulting in paying the EMIs to the banks as per the tripartite agreement, banks initiated action against the buyers to recover the amount. 'Banks disbursed loan to builder but didn't link it to construction stages' Aggrieved by the action of banks, a large number of homebuyers had approached Delhi high court, which had in 2023 refused to grant them relief saying, there were alternate remedies available to them. Subsequently, they knocked the doors of the apex court, which granted them interim protection. As homebuyers are facing the threat of cheque bounce cases, a bench of Justices Surya Kant and Ujjal Bhuyan on Monday directed that no cheque bounce complaint against such homebuyers be entertained while the issue is pending. "In the meantime, there shall be interim stay in all matters, to the effect that no coercive action including complaint under Section 138 of the Negotiable Instruments Act, 1881, shall be entertained on behalf of the banks/financial institutions or builders/developers against the homebuyers," the order, granting protection to all such homebuyers. Challenging the HC order, the aggrieved homebuyers submitted that they were victims of illegal disbursal of loan by the bank directly into the account of the builder in violation of RBI guidelines. "This is the classic case where one rich man (bank/financial institutions) gave money to another rich man (builder). The rich man who received the money (builder) ran away with it without fulfilling his obligations. The rich man who gave the money (bank/financial institutions), disbursed it in violation of the law of the land. The poor man (homebuyer) is now made a victim and is pushed into litigation by the bank when he has not received a single rupee. And is deprived of his dream home," a petition, filed by advocate Anshul Gupta on behalf of a batch of homebuyers, said. They alleged that the main violation was that the banks disbursed the loan amounts directly to the builder without linking it to the stages of construction, in gross violation of RBI circulars as well as National Housing Bank (NHB) guidelines. "The high court failed to take note of the fact that the builder as well as bank both acted hand in glove. The poor homebuyer is used as a medium to get the loan sanctioned and money transferred from the bank to the builder. The homebuyer herein is pushed into the litigation for the amount which he himself has never seen or actually received. The acts of both builder and banks are in violation of tri-partite agreement and also in violation of RBI/NHB statutory guidelines," the petition said. "The homebuyers are taken for a ride and there exists no legal framework to address the issues when the insolvency proceedings are initiated against the real estate developer and banks still keep charging EMIs/pre-EMIs even when the liability of repayment is of the real estate builder," it said. Agreeing to examine the grievances of homebuyers, SC directed builders/developers two weeks' time to file reply affidavit including details of their assets and the court made it clear that it would be constrained to take coercive action against them if they failed to comply with its order. Source : Times of India INDIA

Government Overcome Income Cap for PMAY Homes in Urban Areas

7/18/2024 12:35:00 PM

In the next phase of PM Awas Yojna (PMAY) in urban areas, govt is looking to slash the income threshold for middle-income group beneficiaries from Rs 18 lakh to Rs 10 lakh to target it better, while also spreading the disbursement of the subsidy over five years, instead of one-shot payment, to ensure better monitoring. Although officials are tight-lipped about the interest subsidy for MIG beneficiaries, sources said it may be around Rs 2.6 lakh as was provided in the last phase of the scheme. Financial allocation for the scheme is likely to be part of the budget to be presented on Tuesday. In the first leg, govt had put the MIG under two categories - those having an annual income of Rs 6 lakh to Rs 12 lakh and households with annual income of Rs 12 lakh to Rs 18 lakh. Now there may only be one MIG category. The changes are being brought to ensure only deserving borrowers get the benefit of the scheme, officials said. The detailed scheme with financial implications is likely to be placed before Cabinet soon, following a presentation that was made to PM Modi recently. The scheme has been redesigned keeping in mind the PM's announcement from the Red Fort last year - to give relief in bank loan interest by providing a help of "lakhs of rupees" to families living in rented houses, unauthorised colonies and shanties in cities, to build their own house, officials told TOI. They added several new provisions have been made based on the learnings from the earlier scheme, seeking to eliminate the scope to beat the system. In its first cabinet meeting, the government had given a go ahead to the second phase of the scheme to provide financial assistance for three crore houses- two crore in rural and one crore in urban areas – over the next five years, but the cost to be incurred for this has to be approved. Like the last phase, PMAY (U) 2.0 will have four- beneficiary-led construction, in-situ slum rehabilitation and credit linked subsidy scheme (CLSS). Barring CLSS beneficiaries, those falling under other categories received up to Rs 1.5 lakh assistance under the scheme. Source : Times of India INDIA

E-auction of Building : LIT Look for Meeting to Fix Rate

7/17/2024 1:42:00 PM

Ludhiana Improvement Trust (LIT) is waiting for the meeting of the rate fixation committee chaired by the deputy commissioner before announcing e-auction of its multi storey building at Rani Jhansi Road. LIT officials want to make another attempt to auction the building, the cost of which is estimated to be Rs 200 crore. They are optimistic about their prospects. The building, which is over a decade old, is in a dilapidated state. It has not been used for years. Earlier, the LIT planned to renovate the building but decided to attempt an auction as renovation was proving to be expensive. An official said that earlier, they wanted to give the building to some bank or other company but they would have to renovate the building to do so. Even then, they could not be sure of finding tenants. He expressed the hope that the auction would be successful. LIT chairman Tarsem Bhinder said, “We want to auction this property as it is located at a prime location and there are chances of buyers taking it up as the market is up at this time. Also, many many multi-storey buildings have come up on this road, so our chances are bright.” He added they have proposed the rate of Rs 200 crore but the DC could increase it to some extent. However, deputy commissioner Sakshi Sahwney said, “The LIT chairman has to fix the meeting and we can decide on the rate afterwords. I had already fixed rates for two properties to be auctioned.”The building has a double basement and 77 units, including restaurants, banks, showrooms shops and penthouses. Still, failure to use it properly led to its degeneration. Construction of the building was completed in 2008. Repeated attempts to auction the property have failed. Former chairman, LIT Raman Balasubramanium’s proposal to develop parking for ghumar mandi in the basement of the building was not implemented. He had also proposed shifting of the LIT office to this building. In April 2018, there was a plan to develop the jewelers market in the building.In 2013, an offer was made to the income tax department to establish their office at the site. A few years ago ,former deputy CM Sukhbir Badal proposed a downtown project which was supposed to come up at the main office of Powercom on Ferozepur Road. There was also a proposal to shift the Powercom to this building. Source : The Economic Time INDIA

Haryana Initiates Strong Measures For Efficient C&D Waste Management

7/17/2024 1:40:00 PM

The Haryana government on Wednesday declared a municipal solid waste exigency in Gurugram due to alarming levels of untreated waste adversely affecting the environment and public health, officials aware of the matter said. Haryana chief secretary T V S N Prasad, who also serves as the chairman of the Executive Committee of the State Disaster Management Authority (SDMA) said under Section 22 of the Disaster Management Act, 2005, the state government had launched the Solid Waste Environment Exigency Program (SWEEP) to address critical waste management issues in Gurugram. The initiative aims to tackle the city’s growing waste crisis by implementing comprehensive measures to manage and reduce untreated waste effectively. Prasad said the program aims to overhaul waste management in Gurugram by implementing a three-tier system for waste collection, segregation, transportation, processing, and disposal across all 35 wards of Gurugram and GMDA areas. “Additional measures include a 24x7 control room with a dedicated helpline, gap analysis of existing infrastructure, a GIS- based waste tracking map, and a robust grievance redressal mechanism. The program also targets the management of construction and demolition waste, ensures adequate machinery for waste processing, institutes cleanliness awards, and launches an Information, Education, and Communication (IEC) plan to raise awareness,” he said. Officials said that daily reports will be submitted to the SDMA, and any violations will result in punitive measures as per relevant laws. The chief secretary also said that any violation of this order will attract punitive provisions under the Disaster Management Act, 2005, the Municipal Corporation Act, 1994, and other applicable laws, which may include fines or imprisonment. “This move follows the Supreme Court’s order on May 13, 2024, and the National Green Tribunal’s (NGT) observations, highlighting the urgent need for a cleaner environment as a fundamental right under Article 21 of the Constitution of India,” he said. The Supreme Court noted that untreated solid waste severely impacts the environment and infringes on citizens’ right to a pollution-free environment. The NGT had previously described the situation as an environmental emergency, underscoring the need for serious and immediate action. Prasad said that the SWEEP program is led by a high-level committee, which includes the divisional commissioner, deputy commissioner, MCG commissioner, chief engineer of the Gurugram Metropolitan Development Authority (GMDA), senior environmental engineer of the Haryana State Pollution Control Board and the deputy commissioner of police (HQ). Ruchika Sethi Takkar, founder member of Why Waste Your Waste, a civil society movement for a zero-waste city, said that they feel a bit reassured that the chief secretary has taken these extraordinary steps, recognising the prolonged suffering of the people due to indiscriminate open dumping and burning of municipal waste and horticultural waste in almost all sectors. “The waste crisis being faced by Gurugram residents is having a direct bearing on our health and well-being including creating air water and soil contamination in our immediate environment. The current situation is nothing short of a health emergency with some sectors facing the worst exposure like Sector 37, Khandsa , Krishna Chowk near Catarpuri, Ghatta Chowk in Sector 55, Sector 29 Leisure Valley area, Golf Course Extension Road facing Nirvana Sector 50, Bajghera and many more,” she said. Bhawani Shankar Tripathy, vice president, RWA Sector 23A and a public health and environmental expert, with years of experience working with large scale programmes said preparedness is a key component in disaster management that ensures adverse impacts on human and natural environment from the disaster can be minimized. “The current human and environmental health crisis in Gurugram, aggravated by land and air pollution, is a purely man-made disaster in the making and a result of mismanagement of recommended solid-waste and environmental systems. Therefore, under SWEEP, the government must also carry out a thorough review of the service provider agreements for city sanitation that have failed to deliver. Monitoring for results and fixing accountability are key components in disaster preparedness and prevention,” he said. Rapid clean-up of C&D waste To ensure a cleaner Gurugram, the Municipal Corporation of Gurugram (MCG) on Wednesday took action for removal of C&D (construction and demolition) waste from key areas such as the Faridabad-Gurugram Road and Sector 29. Officials said within the next 15 to 20 days they will remove all the C&D waste lying on the roadside. Authorities will also take strict action against illegal dumping, including issuing fines and impounding vehicles involved. The decision was taken during a meeting chaired by Vikas Gupta, Commissioner and Secretary of the Urban Local Bodies Department, held at the Public Works Department Rest House in Gurugram on Wednesday, officials said. Municipal commissioner Narhari Singh Bangar, said that senior officials from the district administration, GMDA, HSVP, and the Municipal Corporation have been assigned to oversee the cleanliness campaign ward-wise. “We have already started cleaning up areas and removing waste. Various areas are already witnessing intensified cleaning efforts, with a focus on maintaining cleanliness in critical spots and enhancing the overall sanitation infrastructure within the next few days,” he said. Source : The Economic Time INDIA

SEBI Amends Employment Benefit Scheme for Investment Trusts – REITs and InvITs

7/17/2024 1:38:00 PM

Capital markets regulator Sebi came out with a framework for a unit-based employment benefit scheme for investment trusts -- REITs and InvITs. Under the framework, Sebi has prescribed the manner of the implementation of the scheme through a trust, the manner of receiving units by the employee benefit trust and the manner of allotment of units to the employee benefit trust by REIT (Real Estate Investment Trust) and InvIT (Infrastructure Investment Trust). In two separate notifications, Sebi said the 'unit-based employee benefit scheme' would be in the nature of the employee unit option scheme. Employee unit option scheme refers to a scheme under which the investment manager grants unit options to its employees through an employee benefit trust. The implementation of the scheme would be done through a separate Employee Benefit Trust (EB Trust) which can be created by the manager of a REIT or the investment manager of InvIT. The units held by EB Trust would be used only for the limited purpose of providing unit-based employee benefits. As per Sebi, the investment manager or manager can receive the units of InvIT/REIT in lieu of management fees, for the purpose of providing unit-based employee benefits. The EB trust would not undertake any transfer or sale of units of REIT/InvIT held by it except for providing unit-based benefits to the employees of the manager or investment manager. The trustee of the EB Trust would not be eligible to vote on account of the units of the REIT/InvIT held by it. Any offer of a unit-based employee benefits scheme by the manager would not result in any additional cost to the REIT, InvIT, their respective HoldCo and SPV. For the purpose of disclosure to the recognized stock exchange, the unitholding of the EB Trust would be shown as "non-sponsor and non-public" unitholding. The provisions of Sebi's insider trading PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) rules should apply to the manager/investment manager, its directors, its key managerial personnel, and recipients of UBEB and EB Trust. To give this effect, the Securities and Exchange Board of India (Sebi) has amended REIT and InvIT rules, which became effective from July 12. REITs and InvITs are new concepts in the Indian market but have been a popular choice globally for their lucrative returns and capital appreciation. A REIT is made up of a portfolio of commercial real estate assets, the majority of which are already leased out, and InvITs consist of a portfolio of infrastructure assets like highways. Source : The Economic Time INDIA

Kolte-patil Developers Report 1% Boost in Sales Booking

7/17/2024 1:15:00 PM

New Delhi, Jul 16 (PTI) Realty firm Kolte-Patil Developers Ltd on Tuesday reported a marginal growth of 1 per cent in its sale bookings at Rs 711 crore in the first quarter of this fiscal year as housing demand continues to be strong. The company had sold properties worth Rs 701 crore in the year-ago period. According to a regulatory filing, the company's sale bookings in volume terms rose 3 per cent to 0.96 million square feet during April-June period of 2024-25 fiscal from 0.93 million square feet in the corresponding period of the previous year. The average sales realisation declined 2 per cent to Rs 7,407 crore from Rs 7,545 per square feet during the period under review. Pune-based Kolte-Patil is one of the leading developers in the country. The company has developed and constructed over 64 projects, including residential complexes, integrated townships, commercial complexes and IT parks, covering a saleable area of more than 28 million square feet across Pune, Mumbai and Bengaluru. Source : The Economic Time

Delhi HC Clears Path for Supertech Realters Director: Lookout Circulars Quashed

7/17/2024 1:13:00 PM

In a significant legal development, the Delhi High Court has ruled to quash the lookout circulars that were issued against the director of Supertech Realtors. This decision comes amid regulatory scrutiny and legal proceedings involving the real estate company. The lookout circulars, which had been issued by authorities, were challenged in court by the director of Supertech Realtors. The Delhi High Court's decision to invalidate these circulars represents a legal victory for the director, effectively overturning restrictions on international travel imposed by the circulars. The court's ruling underscores procedural fairness and adherence to legal principles in matters concerning regulatory actions against corporate entities and their officials. It highlights the importance of due process and judicial oversight in resolving disputes arising from regulatory investigations. Supertech Realtors, a prominent player in the real estate sector, has been involved in various legal and regulatory issues pertaining to its operations. The quashing of the lookout circulars is expected to have significant implications for the ongoing legal proceedings and regulatory environment surrounding the company. This ruling by the Delhi High Court marks a pivotal moment in the legal battle for Supertech Realtors and its director, signalling a shift in the regulatory landscape and emphasising the role of judicial review in safeguarding individual rights amidst regulatory actions. Source : The Economic Time INDIA

NAREDCO Suggest that Property Loans Should be Increased to 5 Lakh in Upcoming Project

7/17/2024 1:13:00 PM

The real estate sector has put up various demands ahead of the Union Budget to support and grow the sector in India. The National Real Estate Development Council (NAREDCO) has put forth several recommendations for the sector. The body stated that these recommendations aim to address existing challenges and stimulate growth in the real estate sector, ultimately contributing to the government’s goal of ‘Housing for All’. It added that currently, the annual value of property held as stock-in-trade and not let out is considered ‘Nil’ for up to two years from the end of the financial year in which the construction completion certificate is obtained. After this period, the notional income is taxed. NAREDCO suggests this provision should not apply to real estate developers holding stock due to weak market conditions. Alternatively, they recommend increasing the time limit from two to five years. “As we approach the upcoming budget, the Indian government is poised to unleash a transformative vision for the real estate sector, serving as a pivotal driver in revitalizing our nation’s economy. Industry expects a comprehensive overhaul of tax policies to foster competitiveness and efficiency across corporate and individual tax frameworks,” said Niranjan Hiranandani, Chairman, NAREDCO. He also added that “For the home buyer, increasing the limit of interest deduction paid on home loans from 2 lacs to 5 lacs, bringing long-term capital gains at 10 per cent on par with equity shares, and reducing the period of holding house property to 12 months from the existing 24/36 months to qualify as a long-term capital asset” Under Section 24 of the Income Tax Act, interest on loans for self-occupied property is limited to Rs 2 lakh. Given the rising property prices and interest rates, the body proposes increasing this limit to at least Rs 5 lakh. Additionally, the current limit for setting off house property losses against other income heads under Section 71 is Rs 2 lakh, which is seen as discouraging for the industry where rental income is a major source. NAREDCO recommends removing this limit or increasing it to Rs 5 lakh. Furthermore, NAREDCO urges the government to allow builders the option to pay GST at a concessional rate without input tax credit (ITC) or at a higher tax rate after availing of ITC. Currently, GST on affordable housing units is levied at 1 per cent without ITC and at 5 per cent without ITC on other residential units. The option to choose between concessional rates without ITC or higher rates with ITC would result in tax cost savings and better cash flows for developers, ultimately benefiting end customers. The definition of an affordable residential apartment, which currently includes criteria for carpet area and a price cap, also needs revision. It recommends retaining only the carpet area condition without the price limit. This change would accommodate higher land prices in metro cities and extend affordable housing benefits to more projects, enabling a larger portion of the lower and middle-income population to buy homes. “These recommendations, if implemented, will not only provide much-needed relief to developers but also stimulate demand in the housing sector. By addressing key tax and regulatory issues, we can create a more optimistic environment for both builders and homebuyers, ultimately contributing to the government’s vision of Housing for All” said G Hari Babu, President, NAREDCO. Source : The Economic Time INDIA

Greater Noida Builders to Contribute to Sustainable Water Management with 1% Project Cost Allocation

7/16/2024 1:29:00 PM

The National Green Tribunal Ordered that a case be registered against 38 builders on charges of water theft. Greater Noida West For ground water Exploitation and failed to deposit environment compensation despite notice from Uttar Pradesh Pollution Control BoardUPPCB, Last week, the pollution control board had written to the ground water department asking it to file a complaint against the erring builders. In July last year, a district-level joint committee, comprising district magistrates and officials from state and central pollution control boards, was constituted in the wake of petitions by two environmentalists alleging that around 40 builders were polluting 63 Residential projects are extracting groundwater illegally. , During the investigation, the committee found that 41 projects were extracting ground water through borewells. While it sealed 10 borewells, 12 others were closed by the builders themselves. The committee claimed that the three projects had obtained no-objection certificates from the Ground Water Department for using borewells. Subsequently, the UPPCB sent two notices to 38 builders asking them to deposit 0.5% of the total project cost as environmental compensation, but received no response. “On March 27, we wrote to the ground water department to register a case of water theft against these builders as they have not paid environment compensation. NGT The order read, “UPPCB Regional Officer Radhey Shyam said. The next NGT hearing in the matter is on May 15. We have to send an action taken report to the tribunal before that.” According to the District Ground Water Department, GB Nagar comes under the notified area or over-exploited area in the ground water depletion category. In Greater NoidaThe water level has dropped from 13.60 meters in 2021 to 13.79 in 2022. While the water level in Jewar has dropped from 8.52 meters in 2021 to 8.81 meters in 2022. Source : The Economic Time INDIA

SCDRC Orders Omaxe Chandigarh Extension Developers to Compensate Buyer For Timely Delivery Assurance

7/16/2024 1:27:00 PM

The State Consumer Disputes Redressal Commission has directed the Omaxe Chandigarh Extension Developers Private Limited to pay a compensation of Rs 1.10 lakh to Naresh Garg, a Sector 24-D resident, for failing to deliver the possession of an apartment in the firm’s ‘The Lake’ project at Mullanpur in SAS district. The State Consumer Disputes Redressal Commission found Omaxe guilty of providing deficient service and adopting unfair trade practices. The company has been directed to compensate Garg for the delays and associated issues. Garg, in his complaint to the Commission, stated that he had purchased a 1,285 square feet unit in the project for Rs 56,63,404 as per an agreement dated Dec 16, 2015. The possession of the property was expected by Dec 15, 2019, he said. When the possession was not delivered in time by the developer, Garg accepted an offer to relocate to a bigger unit measuring 1,850 square feet under a new agreement dated Jan 29, 2020. However, the possession for this unit was also delayed beyond the committed date of July 31, 2021. In an email dated Jan 27, 2023, the company informed Garg that the construction was still ongoing and possession would be delivered by March 2024. Garg then approached the State Consumer Disputes Redressal Commission and sought possession of the new unit along with compensation for the delay, mental agony, and harassment. He also sought a refund on the GST paid. In its defence, Omaxe argued that the delay was due to force majeure conditions, including the Covid-19 pandemic. The firm stated that the RERA, Punjab, had extended the project’s deadline multiple times due to these conditions. After listening to both sides, the Commission noted that the possession had not been delivered even by the extended deadlines, indicating a significant delay. The Commission ordered Omaxe to hand over the physical possession of the unit, complete in all respects, within two months from the receipt of the order, after obtaining the necessary certificates from the authorities and receiving the remaining sale consideration from Garg. The firm was also directed to execute the sale deed within one month of delivering the possession. The commission also ordered Omaxe to pay compensation at 9% interest per annum on the received sale consideration from april 30, 2022, until july 31, 2024, within 30 days of the order. If delayed, the compensation will carry 12% interest per annum until paid, and omaxe must continue to pay compensation at 9% interest per annum from august 1, 2024, onwards, every month until compliance. The developer also directed to pay an additional Rs 75,000 to Garg for mrntal agony, harassment, deficiency in providing service and adoption of unfair trade practice. It was also instructed to pay Rs 35,000 as litigation costs within 30 days, failing which rhese amounts will also carry 9% interest per annum until realization. Source : The Economic Time INDIA

Birla Estate Lock up Five Acres Land in Gurgaon, Targets Rs 1400cr Revenue

7/16/2024 1:24:00 PM

Birla Estates, the illustrious real estate arm of the Aditya Birla Group and a wholly-owned subsidiary of Century Textiles and Industries Limited recently acquired 5 Acres of land parcel in sector 71, Gurugram. This prestigious project envisions the development of luxurious residential units boasting an impressive development potential of approximately 10 Lakh-SqFt. Birla Estates aims to generate over INR 1,400 Crore in revenue. The upcoming luxurious project is situated on the Southern Peripheral Road (SPR). It offers excellent connectivity to Delhi and other parts of Gurugram via the Dwarka Expressway, Sohna Road, and Golf Course Extension Road. Furthermore, Birla Estates entered a joint venture with Barmalt India Pvt Ltd for a luxury residential group housing development in Sector 31, Gurugram. This 13.27 Acres land parcel has a development potential of approximately 2.4 Million-SqFt, offering a revenue potential of INR 5000 Crore. These projects solidify Birla Estates as a leader in NCR’s luxury living segment, catering to discerning buyers seeking modern amenities. source : The Economic Time INDIA

Innov8 starts three centres in Delhi-NCR with Rs 10 crore investment

7/15/2024 1:00:00 PM

Co-working firm Innov8 has started three new facilities with over 600 sitting capacity in Delhi-NCR at an investment of Rs 10 crore as part of its expansion plan amid a rise in demand for flexible workspace. These three facilities, having a total of 60,000 square feet area, are located at Unitech Cyber Park, DLF Cyber City and Okhla in Delhi-NCR, the company said in a statement. "Delhi NCR's thriving startup ecosystem and its position as a major corporate hub make it an ideal location for our latest co-working spaces," Ritesh Malik, Founder of Innov8, said. Innov8, which was acquired by OYO in 2019, has invested Rs 10 crore towards the development of these co-working centres. Founded in 2015, Innov8 is currently spread across nine cities - Delhi, Gurugram, Mumbai, Pune, Chennai, Bengaluru, Ahmedabad, Hyderabad, and Indore - with over 30 centres hosting more than 8,000 employees of its clients. Currently, the company has seven centres in Delhi-NCR. Source : The Economic Time INDIA

NBCC interested in taking over all of Supertech’s Pending Projects

7/15/2024 12:53:00 PM

State-owned construction company NBCC has shown interest in taking over all the pending projects of real estate developer Supertech, which has been facing multiple cases from homebuyers over delayed deliveries besides an Enforcement Directorate investigation into alleged money laundering. During the insolvency proceedings of one of the group companies of Supertech, the interim resolution professional (IRP) had approached NBCC. NBCC has informed IRP and lender Union Bank of India that it is ready to take all the projects of Supertech, provided it is given complete access to the details of the projects and all the data related to them. The Noida-headquartered real estate developer has to deliver over 15,000 homes. According to a National Company Law Appellate Tribunal (NCLAT) order on July 8, attorney general Venkat Ramani has submitted before the court that he has received instructions that NBCC is interested in undertaking the projects subject to due diligence and that lenders of the Supertech are not averse to the proposal of NBCC. “Alok Kumar, counsel for Union Bank of India, submits that NBCC was earlier contacted by the IRP with regard to Eco Village-II and NBCC has now informed the lenders that they may take all the projects provided they are given access to the details of the projects and other data. Counsel for the IRP submits that in event the lenders make a request with regard to relevant details, the same shall be shared by the IRP,” the NCLAT order said. The bankruptcy court had ordered Corporate Insolvency Resolution Process (CIRP) against Supertech Ltd, one of the companies of the Supertech group, based on a petition filed by Union Bank of India for non-payment of around Rs 432 crore of dues. According to Supertech, while one project is under insolvency, for other projects, the company and lender along with IRP will decide the outcome. “We haven’t received the (NBCC) proposal yet… As a stakeholder, we have the right to decide and will convey the decision once we receive the proposal,” said RK Arora, chairman of Supertech. In a similar case, NBCC is delivering more than 41,000 sold and 5,000 unsold units in over 20 stalled projects of the Amrapali group. Supertech’s total liabilities including dues to banks and development authority amount to about Rs 8,000 crore, while project receivables from both launched and yet-to-be-launched projects exceed Rs 14,000 crore, making the projects' net worth positive. The company has already submitted a proposal to the Uttar Pradesh government for the revival of the company. According to the proposal, the dues to the land authority amount to Rs 2,670 crore, with almost half of this being interest on the land cost. The company also owes Rs 830 crore to various banks. It also requested about Rs 5,000 crore from lenders to complete the stuck projects. Source : The Economic Time INDIA

L&DO clears 15 acre land in Eviction Drive in Delhi’s Civil Lines

7/15/2024 12:47:00 PM

In a major eviction drive against encroachment of public land, the Land and Development Office (L&DO) under the Union housing and urban affairs ministry cleared almost 15 acres of prime land in Khyber Pass in Civil Lines area on Saturday. Sources said the current market value of the large patch of around 32 acres, including the cleared portion, in the area is estimated at over Rs 2,000 crore. The Nazul land (govt land) is owned by the L&DO and it was given to the defence ministry in 1935. There were hutments, known as Khyber Pass Hostel, for accommodation of the support staff of defence personnel. The cleared portion is worth around Rs 1,000 crore. Officials said though the eviction was to begin from March 4, it was stopped at the direction of Delhi High Court. After the matter was examined at length by HC and a judgment was passed on July 9 upholding the eviction order, the L&DO carried out the eviction on Saturday. They added that such valuable land cannot be allowed to be occupied by few individuals for the benefit of few at loss to the govt. The eviction was carried out with support of Delhi Police, Delhi administration, Municipal Corporation of Delhi and Central Public Works Department, sources said. Some of the occupants had earlier taken the matter to the Delhi High Court seeking relief after the L&DO had issued a public notice to the occupants on March 1, 2024 to vacate. The occupants had claimed that the hostels were allotted to their fathers and grand-fathers about 70 years back and hence they were entitled to resettlement. Challenging the eviction notice, petitioners had pleaded before the HC that they could not be evicted by following the due process of law as they were inducted by the "Officers of the Armed Forces" to cater to their needs and they were paying rents. The high court, in its order, took note that the petitioners did not show any document as to who inducted them and said since this issue requires leading of evidence, the petitioners needed to file suit and lead evidence to show that they were inducted lawfully by persons who were competent to do so. Relying on the affidavit of the petitioners, which mentioned that no rent has been paid by them after 2001 and, the HC observed that the "petitioners cannot be called as legal occupants of the land in question and are rank trespassers". It also rejected the argument that the petitioners were inducted lawfully and that they are authorised occupants. Dismissing the petition, the court said it "does not find any reason" to quash the notice dated March 1, 2024. Source : The Economic Time INDIA

Haryana cabinet approves scheme to provide affordable housing for economically weaker sections

7/13/2024 12:55:00 PM

Chandigarh, Jul 12 (PTI) The Haryana Cabinet on Friday approved the 'Mukhya Mantri Shehri Awas Yojana' which seeks to provide affordable housing to the economically weaker sections (EWS) of society. Under this scheme, housing facilities will be extended to all poor families who either lack their own house in urban areas or currently reside in 'kutcha houses', according to the decision taken by the state Cabinet under the chairmanship of Chief Minister Nayab Singh Saini. Initially, the initiative aims to provide housing to 1 lakh economically weaker families, according to an official statement issued here. Those having annual family income of up to Rs 1.80 lakh as per the 'Parivar Pehchan Patra' (family id) and do not own a 'pucca' house in any urban area of Haryana will be eligible for the housing scheme. The scheme has provisions for a 30 square yard plot for each eligible family, allowing the beneficiaries to construct their own 'pucca' houses. The state government, through the Department of Housing for All, will provide the necessary land, the statement said. This scheme, primarily state-sponsored, will integrate with the beneficiary-led construction (BLC) vertical of the Pradhan Mantri Awas Yojana-Urban (PMAY-U). It targets families with an annual income of up to Rs 1.80 lakh who have been registered in the demand survey conducted via the Department of Housing For All's web portal from September 13, 2023 to October 19, 2023, and January 5, 2024 to January 19, 2024, it said. Last year, an online registration drive was conducted to assess the housing demand among urban families. Approximately 2.89 lakh applicants registered their demand for flats or plots, with 1.51 lakh opting for plots and 1.39 lakh for flats. Beneficiaries can construct a duplex (double-storey) flat with a carpet area of 350 square feet/425 sqft on the allotted 30 square yard plot, as per standard designs. Financial assistance, combining subsidies, loans, and interest subvention schemes, will be provided. A financial aid of up to Rs 1.5 lakh each will be offered to facilitate house construction under the beneficiary-led construction vertical of PMAY-U, it further said. For beneficiaries securing housing loans up to Rs 6 lakh from nationalized banks or housing finance companies, the state government will provide interest subvention on their EMIs. The government will cover the total interest amount for the first two years and up to Rs 35,000 of the interest amount in the third year. In the fourth year, the government will pay up to Rs 25,000 of the interest amount, and up to Rs 10,000 in the fifth year. Additionally, building approval charges, development charges, and the betterment levy will be waived for MMSAY beneficiaries. The registration (conveyance deed) fee for the plot will be a nominal Rs 500. Charges for water and sewerage connections will also be waived at the time of application by the concerned authority, it said. Meanwhile, the Haryana government also decided to implement Mukhya Mantri Gramin Awas Yojana (MMGAY) to ensure that all the rural residents have access to a habitable and affordable dwelling unit. MMGAY aims to provide affordable, quality rural housing, fostering sustainable development and vibrant communities. Under the scheme, financial assistance of up to Rs 1 lakh or actual price of the plot of land, whichever is less, for the purchase of own residential plot of up to 100 square yards will be provided to those who did not get plot under the Mahatma Gandhi Gramin Basti Yojana (MGGBY). MMGAY will be implemented for 2024-25 and 2025-26. The Rural Development Department will provide the list of beneficiaries under MGGBY to whom possession of 100 square yards plot cannot be delivered. The scheme will cover those who were to be allotted plots under MGGBY but have not been given possession of the plots in the last 15 years. Source : The Economic Time INDIA

Sunteck Realty's sales bookings up by 29.7% in Q1 FY25

7/13/2024 12:54:00 PM

Sunteck Realty Ltd.'s presales increased 29.7% year-on-year to Rs 502 crore in the quarter-ended June, according to the provisional numbers released by the company. The collections for the quarter stood at Rs 342 crore, 18.8% higher in comparison to Rs 288 crore collected over the same period in the previous fiscal, the company said in an exchange filing on Friday. In May, the board of directorsof Sunteck Realty approved the resolution to raise Rs 2,250 crore through private placement and the issue of equity shares. The company also approved the amalgamation of its wholly owned subsidiary companies—Starlight Systems Pvt. and Satguru Infocorp Services Pvt.—with Sunteck Realty. Shares of Sunteck Realty closed 2.20% higher at Rs 284.26 apiece on Friday, as compared with a 0.81% gain in the country's benchmark NSE Nifty 50. Source : The Economic Time INDIA

“Affordable Housing Market Adjusts: Strategic Opportunities for Buyers Under Rs 50 Lakh”

7/13/2024 12:53:00 PM

New supply of affordable apartments -- costing below Rs 50 lakh -- declined 21 per cent in the April-June period across seven major cities as builders are launching more premium flats, according to JLL India. Real estate consultant JLL India on Friday released data for housing market of major seven cities, showing a 5 per cent increase in fresh supply of apartments to 159,455 units during April-June 2024 from 151,207 units in the year-ago period. The data includes only apartments. Rowhouses, villas, and plotted developments have been excluded from the analysis. Of the total new supply in the June quarter, the launches of affaordable flats stood at 13,277 units, a fall of 21 per cent from 16,728 units in the same period last year. The launches of flats, each costing Rs 50 lakh to Rs 1 crore, declined 14 per cent to 47,930 units from 55,701 units. In the Rs 1-3 crore price bracket, the new supply grew 3 per cent to 69,312 units from 67,119 units. The launches of apartments, each priced Rs 3-5 crore, more than doubled to 19,202 units from 7,149 units. Similarly, in above Rs 5 crore category, the new supply jumped more than two-fold to 9,734 units from 4,510 units. Commenting on the trend of rise in supply of premium homes and fall in supply of affordable homes, Siva Krishnan, Senior Managing Director (Chennai and Coimbatore), Head- Residential Services, India, JLL, said, "This speaks about developers' active response to the surge in demand for high value homes among the target clientele." On demand, the consultant said the sales of apartments across seven major cities rose 22 per cent to 154,921 units during April-June 2024 from 126,587 units in the year-ago period. These seven cities are -- Delhi-NCR, Mumbai Metropolitan Region (MMR), Kolkata, Chennai, Bengaluru, Hyderabad, and Pune. The MMR includes Mumbai city, Mumbai suburbs, Thane city, and Navi Mumbai; Delhi-NCR includes Delhi, Gurugram, Noida, Greater Noida, Ghaziabad, Faridabad, and Sohna. "Interesting to note, sales momentum has successfully complemented the new launches with around 30 per cent of the H1 2024 sales (154,921 units) being contributed by projects that got launched during the last six months," said Samantak Das, Chief Economist and Head of Research, India, JLL. Listed and reputed developers, consistently bringing in a substantial supply over the past few years have played a key role in this growing trend, Das said. Source : The Economic Time INDIA

Retail space demand in malls rises 15% in April-June: Cushman & Wakefield

7/12/2024 11:55:00 AM

Leasing of retail spaces in shopping malls rose 15 per cent annually during the April-June period to 6.12 lakh square feet across eight major cities on better demand from retailers, according to Cushman & Wakefield. Real estate consultant Cushman & Wakefield India data showed that the demand for retail space on major high streets across these eight major cities increased 4 per cent annually to nearly 14 lakh square feet during the second quarter of the 2024 calendar year. As per the data, the leasing activities in shopping malls rose to 6,12,396 square feet during April-June 2024 from 5,33,078 square feet in the year-ago period. High street locations saw a growth of 4 per cent in leasing to 13,89,768 square feet from 13,31,705 square feet during the period under review. The leasing data includes all types of shopping malls- Grade A and Grade B -- and also all prominent mainstreets. These eight cities are -- Delhi-NCR, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad, Pune and Ahmedabad. Commenting on the report, Saurabh Shatdal, Head Retail and Managing Director, Capital Markets, Cushman & Wakefield, said, "The second quarter of 2024 was marked by a strong demand for both Grade A malls and high street retail. The growth in both formats underscores the vibrancy of India's retail landscape." While high street rental growth has seen a notable increase, the upcoming Grade A mall supply of 4.5 million (45 lakh) square feet might stabilise rental costs in the short to medium term as demand-supply dynamics shift to an extent, he added. "However, we anticipate the main street activity to remain healthy. Additionally, the dominance of domestic brands, accounting for 53 per cent of leasing volume, along with the strong performance of fashion and F&B (food and beverages) highlight the evolving retail preferences in India," Shatdal said. The consultant highlighted the continued dominance of main-street retail leasing, owing to limited new mall openings and a strong demand for high-quality retail spaces. Retailers are increasingly focusing on main streets in prominent locations across India, with emerging clusters forming around residential and commercial hubs, it added. "This trend is reflected in leasing activity with high street leases accounting for 70 per cent of total leases in Q2 (April-June) 2024, compared to 30 per cent for mall leases," C&W said. The rental growth across prominent main streets in Q2 of 2024 further underscores their growing appeal. Kolkata, Bengaluru, Hyderabad and Mumbai have all experienced significant year-on-year rental increases, demonstrating strong demand and potential for high-street retail in the country. Source : The Economic Time INDIA

Haryana CM approves development works worth ₹2,887 crore in Gurugram

7/12/2024 11:53:00 AM

Chief minister (CM) Nayab Singh Saini-led Gurugram Metropolitan Development Authority (GMDA) panel on Wednesday gave the nod to install 10,000 high-quality CCTV cameras and construction of flyovers at the junction of Sector 45-46-51-52, and the intersection of Sector 85-86-89-90 to decongest traffic. The GMDA approved ₹2,887 crore budget for the 2024-25 financial year and after a detailed discussion on various agendas gave the nod to increase the capacity of CCTV cameras for city surveillance and adaptive traffic management, construct new water treatment plants, enhance the capacity of existing ones, and strengthening the network of water drainage and sewer treatment plants. During the meeting, the CM expressed concern over the issue of waterlogging in Gurugram and said officers must not show any laxity in addressing this issue. He asked them to utilise all resources to resolve waterlogging promptly. Saini said he would visit Gurugram to personally oversee the situation, and reiterated that no negligence will be tolerated. He also directed chief secretary TVSN Prasad to hold officers concerned accountable for their responsibilities in this matter. Meanwhile, the GMDA panel approved the implementation of CCTV project Phase 3 for city surveillance and adaptive traffic management at an estimated cost of ₹422 crore. While approving the construction of a flyover at Sector 45-46-51-52 junction, ₹52 crore was allocated. Similarly, to alleviate congestion at the intersection of Sector 85-86-89-90, another flyover will be constructed to facilitate commuters and enhance mobility. The project for the upgradation of the southern peripheral road (SPR) was also approved in the meeting. Under this, an elevated corridor and interchange will be constructed from Vatika Chowk to NH-48 CPR. The estimated cost of this will be ₹620 crore. To provide modern sports infrastructure, the GMDA authority approved the upgradation of Tau Devi Lal Stadium, Gurugram, at an estimated cost of ₹634 crore. The meeting approved the procurement of 200 electric buses under the gross cost contracting model for operation in the GMDA area at a cost of ₹70 crore. “The introduction of these electric buses is a significant step towards reducing the city’s carbon footprint and promoting sustainable urban transportation. These buses will be equipped with the latest technology to ensure comfort and safety for passengers,” said the spokesperson. Meanwhile, ₹215 crore will be spent on laying the master stormwater drainage system in Sector 76-80 along National Highway-48. The project for the upgradation of the 120 MLD sewerage treatment plant at Behrampur and the 100 MLD STP at Dhanwapur, Gurugram, has been approved at an estimated cost of ₹51 crore and ₹75 crore, respectively. Approval was also granted for the construction of two STPs of 100 MLD each in Sector 107 in two phases at an estimated cost of ₹500 crore. Among other issues discussed during the meeting included the drainage improvement plan, door-to-door garbage collection, construction of a civil hospital, and a new bus stand. Town and country planning minister JP Dalal, minister of state for transport Aseem Goyal, minister of state for urban local bodies Subhash Sudha, minister of state for sports and forests Sanjay Singh, besides senior officers were among others present in the meeting. Union minister of state for statistics and programme implementation Rao Inderjit Singh, along with other members of the GMDA, attended the meeting through videoconferencing. Source : The Economic Time INDIA

Leasing of workspace in Jan-Jun up 29% to 33.54 million sq ft: Report

7/11/2024 12:36:00 PM

New Delhi, July 3 (PTI) Office demand across seven major cities hit an all-time high in the first half of this calendar year with gross leasing of 33.54 million square feet, according to JLL India. Real estate consultant JLL India on Wednesday released the data of office demand for the January-June period of this year which saw 29 per cent annual growth in gross leasing to 33.54 million square feet across these seven cities -- Delhi-NCR, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad and Pune. "H1 2024 (January to June) marked the best-ever first half, with leasing volumes at 33.5 million sq ft, surpassing the previous highest H1 performance seen in 2019," the consultant highlighted. Gross leasing of office space stood at 26.01 million square feet in the January-June period of 2023. In January-June 2019, the gross leasing of office space stood at 30.71 million square feet, but the numbers fell to 21.10 million square feet in January-June 2020 and 12.55 million square feet in January-June 2021 due to a slowdown in demand because of the COVID pandemic. The office demand bounced back post-COVID. In January-June 2022, the gross office leasing stood at 24.68 million square feet. Gross leasing refers to all lease transactions recorded during the period, including confirmed pre-commitments, but does not include term renewals. Deals in the discussion stage are not included. "2024 projected to mark record-breaking gross leasing of 65-70 million sq. ft, setting the stage for a historic milestone in the country's commercial real estate market," JLL India projected. Source : The Times of India INDIA

Tata Realty raises Rs 825 crore from IFC to refinance IT park project in Chennai

7/11/2024 12:34:00 PM

Tata Realty on Monday said it has secured Rs 825 crore loan from the International Finance Corporation (IFC) to refinance its green commercial project in Chennai. "This funding is earmarked for the strategic refinancing of Ramanujan Intellion Park in Chennai, a landmark development in sustainable real estate," the company said. Ramanujan Intellion Park has achieved a complete reduction of emissions through renewables or carbon off-sets, saving more than 20 per cent on water and embodied energy in materials while attaining over 42 per cent energy savings on-site. Located strategically along Old Mahabalipuram Road (IT Expressway) in Taramani, Chennai, the 25.27-acre Ramanujan Intellion Park encompasses both a Special Economic Zone (SEZ) processing area and a non-processing zone. Sanjay Dutt, MD & CEO of Tata Realty, said, "The financing from IFC is a strategic investment in advancing our efforts to enhance the sustainability and climate resilience of Ramanujan Intellion Park." Dutt said this funding would enable the company to continue its leadership in green building practices. Elaborating more on the project, Tata Realty said this fully owned and operational IT park hosts between 40,000 to 60,000 professionals across its six buildings daily. The IT park includes the Taj Wellington Mews Hotel facility, which offers 112 serviced apartments and a 1,500-seater convention centre in the non-processing zone. This financing initiative is a part of Tata Realty's broader commitment to advance its sustainability efforts and elevate the standard of green commercial spaces across India, the statement said. The funds will further integrate state-of-the-art sustainable technologies and practices at this flagship asset, which boasts a total leasable area of about 4.67 million sq ft of IT/ITES commercial office spaces. Imad N Fakhoury, IFC's Regional Director for South Asia, said, "Business parks are key to greening the real estate sector, and Tata Realty's Ramanujan Intellion Park is at the forefront of this transformation." Tata Realty and Infrastructure Ltd is a 100 per cent subsidiary of Tata Sons and one of the leading real estate development companies in India with an extensive portfolio of over 50 projects across 15 cities. Tata Realty and Infrastructure Ltd has developed around 17.6 million square feet of commercial projects and has around 16.7 million square feet of projects under development & planning. Source : The Economic Time INDIA

No project can fail if builders maintain financial discipline: Haryana RERA member

7/11/2024 12:32:00 PM

No real estate project can fail if developers maintain financial discipline from the very beginning , Sanjeev Kumar Arora member of Gurugram bench of Haryana regulatory authority, said. Addressing Assocham's National Conference on Changing Dynamics of Real Estate for Vikist Bharat, he also pitched for reduction of interest rates on home loans to boost demand. "I believe no project can fail, provided the promoter tries to maintain the financial discipline from the inception of the project and tries to maintain a ratio of debut to equity…if financial discipline is maintained by the promoters since the inception of the project, no project can fail," Arora said. He spoke about the role of the real estate sector in the Indian economy, especially in creation of employment opportunities. "There is a need of rationalisation of interest rates, lending rates, because once the lending rates are reduced, certainly the investors or the homebuyers come forward. And builders are also happy to deliver at least possible costs," Arora said. Talking about real estate law RERA, Arora, a member of Gurugram bench of Haryana Real Estate Regulatory Authority (HRERA), said about 1,25,000 projects have been registered under RERA since the enactment across India while 75,000 brokers also have registered. Pradeep Aggarwal, Chairman of National Council on Real Estate, Housing and Urban Development at Assocham, said the sector is crucial to make India a top economy. Real estate is a Rs 24 lakh crore market, and its GDP contribution is around 13.8 per cent, he added. Urbanbriq Development Management Pvt Ltd Director Vineet Relia said there could be a downcycle if the government doesn't support this sector in the coming years with regards to affordability. Source : The Economic time INDIA

Alpha Corp invests Rs.350 crore & introduces Luxury Housing Project in Gurugram

7/10/2024 1:56:00 PM

Alpha Corp, a real estate firm located in Gurugram, has unveiled Alpha Corp SKY1, a luxurious residential project spanning 2.38 acres in the millennium city. The company intends to invest approximately Rs.350 crore in this initiative, as stated on July 9th. The corporation anticipates generating around Rs.600 crore in revenue from its latest high-end residential development in Gurugram, as per its announcement. According to the company, the real estate firm plans to invest Rs.350 crore in developing the 2.38-acre project, with expected sales revenue totaling around Rs.600 crore. The company is constructing approximately 200 housing units within the 2.38-acre project located in Gurugram. Initially, around 40 units are being released for sale in the first phase. The project is slated to unfold in two phases, with subsequent phases expected to launch in the upcoming quarter, according to the company's statement. Alpha Corp SKY1 offers apartments ranging from 2,400 to 3,600 sq. ft. with prices starting from Rs.4.5 crore and going up to Rs.5 crore and above. Construction on the project is scheduled to commence by September 2024, and the units are expected to be ready for possession within the next four years, according to the company's announcement. In a joint development initiative, the company has partnered with landowners under separate agreements. The first land parcel spans 2.38 acres, while the second covers 2.36 acres. The overall development will encompass nearly half a million square feet, as disclosed by the company. Alpha Corp has developments that include integrated townships, luxury condominiums, corporate centers, retail hubs, and industrial parks across various regions, including the National Capital Region (NCR), Punjab, Uttar Pradesh, and Gujarat. Source : The Economic Time INDIA

Tata Realty plans to triple its office space portfolio in 7 years

7/10/2024 2:17:00 AM

Tata Realty has unveiled an ambitious plan to triple its office space portfolio within the next seven years. This significant expansion underscores the company’s commitment to becoming a dominant player in the commercial real estate market. Moreover, it reflects Tata Realty’s confidence in the growing demand for high-quality office spaces in India. The decision to expand is driven by the increasing demand for premium office spaces. As businesses continue to grow and new startups emerge, the need for modern and efficient office infrastructure has never been more critical. Because of this trend, Tata Realty aims to cater to the evolving needs of companies looking for state-of-the-art office environments. One of the key elements of Tata Realty’s expansion plan is the selection of strategic locations for new developments. The company intends to focus on major metropolitan areas, such as Mumbai, Delhi-NCR, Bengaluru, and Hyderabad. These cities are not only economic hubs but also attract a substantial amount of domestic and international business investments. Furthermore, Tata Realty is committed to incorporating sustainable development practices in its projects. The company plans to design and construct office spaces that are energy- efficient and environmentally friendly. This approach aligns with global trends toward sustainability and reflects Tata Realty’s dedication to corporate social responsibility. To support this expansion, Tata Realty will make substantial investments in acquiring land and developing infrastructure. The company is exploring various financing options, including equity funding, debt financing, and joint ventures. Such a diversified approach to funding will help mitigate risks and ensure the successful execution of the expansion strategy. Tata Realty also aims to enhance the tenant experience by offering flexible and customizable office spaces. By understanding the unique requirements of different businesses, Tata Realty can provide tailored solutions that cater to the specific needs of its tenants. This customer-centric approach is expected to attract a diverse range of clients, from startups to multinational corporations. In addition, Tata Realty plans to leverage technology to improve the efficiency and functionality of its office spaces. Smart building technologies, such as automated lighting and climate control systems, will be integrated into new developments. This will not only enhance the comfort and productivity of occupants but also contribute to energy savings. However, expanding the office space portfolio comes with its own set of challenges. These include regulatory hurdles, land acquisition issues, and potential market fluctuations. Tata Realty is prepared to address these challenges by working closely with government authorities, adopting flexible strategies, and continuously monitoring market trends. In conclusion, Tata Realty’s plan to triple its office space portfolio in the next seven years is a testament to its long-term vision and strategic foresight. By addressing market demand, focusing on sustainable development, and leveraging technology, Tata Realty is well-positioned to achieve its ambitious goals. This expansion will not only strengthen Tata Realty’s market presence but also contribute to the overall growth of the commercial real estate sector in India. Source : The Economic Times INDIA

Global BFSI companies take up commercial space in hyderabad

7/10/2024 2:15:00 AM

Hyderabad is poised to consolidate its position as a preferred destination for facilities of Banking, Financial Services and Insurance (BFSI) firms on the back of its strategic location as well as government’s commitment to foster a thriving business environment. The city is likely to attract more major BFSI players in the coming quarters thus strengthening its position as a comprehensive business destination catering to diverse industries, government sources said, citing as examples the decision of Cigna Healthcare, Lloyds Bank, Swiss Re, MetLife, DTCC and Ameriprise. While Hyderabad has emerged as a prominent IT hub, the first half of 2024 (January-June) saw several BFSI organisations establishing presence signifying a significant shift contributing to Hyderabad’s position as a well-rounded business hub. The developments reflect the growing confidence in the city’s robust infrastructure, skilled workforce, overall business environment and a stable political environment. The office leasing activity is an indicator of growing engagement of BFSI in Hyderabad with the sector H1-2024 accounting for as much one third of office space offtake. It also highlights the supportive, robust ecosystem Hyderabad fosters and benefits not just large corporations but also for startups within the BFSI sector. Source : Times of India INDIA

HDFC Capital to Invest $2 Billion in Affordable Housing by 2025

7/9/2024 1:46:00 PM

HDFC Capital Advisors is making a substantial investment in affordable and mid-income housing, with plans to allocate more than $2 billion to this sector across India’s major property markets by the end of 2025. This move aims to address supply-side constraints, according to a senior company executive. As the world’s largest affordable housing platform, HDFC Capital, which includes the Abu Dhabi Investment Authority (ADIA) as a key investor, is progressing towards its goal of financing 1 million affordable homes in India through partnerships with leading developers. “The government recently announced support for 3 crore affordable homes, including 1 crore in urban areas. This presents a $500 billion business opportunity, requiring at least $100 billion in investments from public and private markets, as well as debt. HDFC Capital will continue to invest in this segment's supply side,” stated Vipul Roongta, MD & CEO of HDFC Capital Advisors. The fund aims to deploy at least $1 billion annually over the next two years in affordable and mid-income housing across the top 15 Indian cities, including the Mumbai region, Delhi NCR, Bengaluru, Pune, Hyderabad, Chennai, Kolkata, and Ahmedabad. In the last six months alone, it has committed $1 billion to affordable and mid-income housing projects, highlighting the significant demand for capital in this sector. “Despite the current perception of a premiumization in India’s property markets, demand for affordable housing remains strong and is unlikely to diminish soon. Industry estimates suggest an affordable housing shortage of around 35 million units in urban India by 2030,” Roongta explained. The development of affordable housing in India has lagged behind demand due to high land prices, limited participation from large developers, and financing challenges. Roongta noted that India's ongoing demographic dividend, expected to last for the next 30 years, will boost purchasing power and lead to a consumption boom. By 2030, over 200 million households are projected to be in the upper middle class and above category, up from 70 million in 2018, fueling sustained housing demand. One indicator of this robust demand is the high demand for housing despite rising mortgage rates. Roongta believes that affordable and mid-income housing is now a key driver for India’s real estate sector. He predicts the sector’s GDP contribution will increase from the current 7% to nearly 15% by 2030, due to its multiplier effect on more than 250 ancillary industries. He estimates that meeting the demand for affordable housing will contribute around $2 trillion to the GDP. Aligned with the Indian government’s ‘Housing for All’ goal, HDFC Capital was established in 2016 to finance affordable housing development by providing flexible, long-term capital to developers. In its portfolio, unit prices start from Rs 12.50 lakh, with around 40% of units priced below Rs 42 lakh. The fund has invested in over 175 projects, contributing to the development of over 250,000 units. HDFC Capital manages a $3.5 billion funding platform, acting as the investment manager for HDFC Capital Affordable Real Estate Funds 1, 2, and 3. ADIA, which holds a 10% stake in HDFC Capital Advisors, is the primary investor in these funds. Globally, this is ADIA’s first investment in a fund manager. HDFC Capital’s funds provide long-term, flexible financing across the lifecycle of affordable and mid-income housing projects, including early-stage funding. Additionally, the funds invest in technology companies involved in the affordable housing ecosystem, such as construction technology, fintech, and cleantech. HDFC Capital aims to finance the development of one million affordable homes in India through innovative financing, partnerships, and technology, with a focus on sustainability. Source : The Economic Times INDIA

Welspun One’s second fund raises ₹2,275 crore, to focus on warehousing assets

7/9/2024 1:51:00 AM

Welspun One, an integrated fund and warehouse development company of Welspun Group, has raised Rs 2,275 crore for its second fund. This is the largest domestic fundraise in the warehousing space, the company said on Monday. The capital was sourced from nearly 800 limited partners or investors, including high-net-worth and ultra-high-net-worth individuals, family offices, corporates, and domestic institutions. Combined with its first fund, which raised nearly Rs 500 crore in early 2021, Welspun One’s investor base now comprises of approximately 1,000 investors. Its Fund 2 has committed nearly 40% of investible capital across four investments, and anticipates committing the remaining over the next three-four quarters, given a robust pipeline of deals. This will add 8 million sq ft to Welspun One’s existing portfolio of ~10 million sq ft, taking their aggregate portfolio to ~18 million sq ft and entailing total project outlay of $1 billion. Welspun One’s focus for Fund 2 is on new-age warehousing assets, such as urban distribution centres, cold chain, agro logistics, and port and airport-based logistics, it said. “These niche sectors offer the potential for superior returns due to low existing supply, strong demand and growth, but limited competition,” it said. Some of the deals are a mixed-use urban logistics development in Thane near Mumbai of close to 1 million sq ft with an estimated cost of Rs 600 crore, and a partnership with the Jawaharlal Nehru Port Authority (JNPA) to develop industrial and warehousing infrastructure in the JNPA special economic zone. This project has a development potential of nearly 1.3 million sq ft at an estimated cost of Rs 700 crore. To date, Fund 1 is fully committed with six investments, aggregating to a development potential of nearly 7.2 million sq ft across 300 acres in five cities. About 50% of this has already been delivered, with the remaining scheduled for delivery over the next four to six quarters, it said . Fund 1 recently delivered its first exit via the sale of its investment in a 0.3 million sq ft park in NCR, sold to an Asia-focused logistics REIT in a transaction valued at Rs 90 crore. Welspun World is looking to streamline logistics operations and stimulate industrial growth through strategic investments in essential infrastructure, according to chairman Balkrishan Goenka. Source : The Economic Time INDIA

Whiteland Corp to develop Rs 5600-cr Westin Residences in Gurugram

7/9/2024 1:44:00 AM

NCR-based Whiteland Corporation entered into a pact with Marriott International on Thursday to bring Westin Residences to Gurugram. The total project investment is estimated at around Rs 5600 crore, which includes construction cost of Rs 5000 cr and land cost of Rs 600 cr. The project topline is pegged at Rs 15000 cr. Located along the Dwarka Expressway, Westin Residences Gurugram is strategically positioned in Sector 103, a 15-minute drive from the CBD of Gurugram and a 15-20 minute drive from the residential areas of South and West Delhi, and close to International Airport and landmarks such as the India International Convention Centre (Yashobhoomi), upcoming DDA Dwarka Golf Course and Diplomatic Enclave, a premium catchment of expats and diplomats catering to over 35 embassies. Westin Residences Gurugram is slated to be the largest branded residences and the first standalone residential (without a hotel on-site) property in India under the renowned Westin brand, promising a blend of exclusivity, wellness, and world-class hospitality. The Residences is poised to meet the growing demand in India from discerning buyers seeking hotel-inspired lifestyle with personalized services, global concierge and more. The first phase, consisting of 674 exclusive residences, is set to be launched in the second quarter of this financial year. The Residences will be an urban resort featuring three and four-bedroom residences ranging from 235 sqm to 386 sqm, where homeowners will have access to high-end amenities while enjoying 20 acres of beautifully-landscaped grounds dedicated mainly to recreation and outdoor activities. Commenting on this, Pankaj Pal, Managing Director of Whiteland Corporation, said, “We are delighted to sign an agreement with Marriott International to bring Westin Residences to India. We believe this unique proposition will herald in a new era in the Indian real estate. The Westin Residences Gurugram will redefine premium home ownership with exceptional service and attention to detail, offering a prestigious address that will bring pride and joy to its residents. Our commitment to creating world-class residential developments, supported by award-winning international consultants, ensures an unparalleled ecosystem for our buyers.” Source : The Economic Time INDIA

Delhi HC sets aside Punjab & Sind Bank's decision to withdraw its Rs 120 cr OTS given to real estate co Ambience Pvt Ltd

7/8/2024 3:29:00 PM

Terming it “arbitrary and unsustainable,” the Delhi High Court has set aside the Punjab and Sind Bank's decision to withdraw its Rs 120 crore one-time loan settlement (OTS) given to real estate firm Ambience Pvt Ltd for the construction and development of a residential project in Noida, UP. The HC said that it is well settled that OTS offer, its acceptance and the sanction letter constitute a sufficient contract. “Thus, the Punjab and Sind Bank, which is a nationalized bank and an instrumentality of the State, cannot act arbitrarily or whimsically in matters of contract. OTS is binding on the bank and cannot be unilaterally withdrawn after accepting payments.” “Accordingly, the letter dated August 1, 2023, issued by the bank withdrawing the OTS (one-time settlement), is hereby set aside. Consequently, the bank is directed to release the securities furnished by the company in the subject Loan Account, and release charge thereon,” Justice Mini Pushkarna held, adding that the withdrawing the OTS is a “cryptic order, bereft of any reasons.” Citing the law laid down by the Supreme Court, the judge said that it is clear that terms of sanction are alone final and binding on the parties. “Any negotiations or discussions, prior to the sanction or subsequently consented to be added by one party, which is not reflected in the Sanction Letter, is not binding on the parties. Therefore, the averments made by bank that certain discussion took place prior to sanction which provides for a right to recompense to the bank, cannot be countenanced. Terms of negotiations which were not subsequently made part of the sanction, cannot be a binding obligation,” she added. Ambience was granted a term loan of Rs 155 crore by P&S Bank towards part financing for the construction and development of a Real Estate Project at Sector-50, Noida under Multiple Banking Arrangement in March 2013. Other banks Punjab National Bank (erstwhile Oriental Bank of Commerce) and HDFC Ltd had also advanced loan of Rs 124 crore and Rs 25 crore, respectively for the project. Initially the loans were sanctioned and disbursed by the banks under Multiple Banking Arrangement. Later on, consortium was formed amongst the participating banks and PNB was appointed as the lead bank. The company had repaid the full loan of HDFC in July 2018. With a view to pay off its debts, the company in February 2023 made separate OTS proposals to PNB and Punjab and Sind Bank. The company’s offer of OTS of Rs 122 crore was accepted by Punjab and Sind Bank. In May 2023, the company had forwarded a no-dues certificate to Punjab and Sind Bank which it received from PNB, stating that the entire dues of the latter had been fully repaid in normal course without a one-time settlement. Thereafter, on August 1, last year, the builder deposited the entire OTS amount to Punjab and Sind Bank, which withdrew the extension of time granted to the firm and also recalled the OTS alleging deviation and concealment by the builder. Punjab and Sind Bank alleged that the company misrepresented them and had given a better offer to Punjab National Bank by making full payment to the latter. However, the HC rejected the bank’s stand, saying Ambience had paid the entire OTS amount along with interest, stipulated in the sanction, thus, there is no question of any deviation or violation or breach of the sanction terms. Source : The Economic Time INDIA

Noida Authority approves changed plans for all Unitech projects

7/8/2024 3:26:00 PM

The Noida authority has approved the layout maps of housing projects being developed by Unitech Group, which is yet to deliver apartments to thousands of homebuyers who have been waiting for over a decade to get their homes. With the layout approval, Unitech can now resume work on incomplete projects and deliver homes to buyers, said Noida authority officials on July 3. The Noida authority was until now refusing to approve the map layouts till the realtor cleared its dues amounting to nearly ₹11,000 crore, said officials in the know of the matter. However, on April 26, 2024, the Supreme Court issued directions to the authority to clear the layout maps, without insisting that the realtor clears the dues first, said officials. “We have approved the layout of incomplete housing projects in Noida on the orders of the Supreme Court. We have also communicated the same to Unitech Group board as directed in the apex court order,” said Lokesh M, chief executive officer, Noida authority. With the layout approval, Unitech can now resume work on incomplete projects and deliver homes to buyers, said Noida authority officials on July 3. The Noida authority was until now refusing to approve the map layouts till the realtor cleared its dues amounting to nearly ₹11,000 crore, said officials in the know of the matter. However, on April 26, 2024, the Supreme Court issued directions to the authority to clear the layout maps, without insisting that the realtor clears the dues first, said officials. “We have approved the layout of incomplete housing projects in Noida on the orders of the Supreme Court. We have also communicated the same to Unitech Group board as directed in the apex court order,” said Lokesh M, chief executive officer, Noida authority. In its order on April 26, the Supreme Court divided the total Unitech land into two parts -- one where homebuyers have been allotted flats and plots, and the other where projects are yet to be launched and the land is lying vacant. The SC instructed the authority to approve the layouts of the first part where homebuyers have been unable to get their flats and projects are lying partially completed, said officials. The Unitech Group board chairman YS Malik said they will start construction at the site without delay once the environmental clearance and other approvals are obtained. “We have already roped in the construction contractors, who are eager to resume work provided all clearances are in place. We have applied for environmental clearances and also the consent to establish from the environmental bodies. We do not know when these will be issued. As and when they are issued, work at the site will begin. Also, we cannot provide a fixed completion and delivery date because that would depend on several factors. But if fund flow is assured, then work will be completed on time or before time,” said Malik, who is in control of Unitech Group. According to the authority’s data, Unitech has 443 acres in sectors 96, 97, 98, 113 and 117. “In all, the Noida authority approved layout maps of projects being developed on 246 acres, which had partially completed projects, while the remaining 197 acres are lying vacant. INDIA

Haryana Allows Stilt Plus Four Floor Construction

7/8/2024 3:25:00 PM

Haryana's Urban Local Bodies Minister, JP Dalal, announced on Tuesday that the state government now permits the construction of stilt plus four floors (S+4) across the state. This decision also applies to old colonies with certain conditions. The move aims to benefit the general public. Minister JP Dalal stated that residential plots in colonies and sectors with approved layout plans for four residential units per plot can now construct S+4 floors without any conditions. Additionally, Deen Dayal Upadhyay Jan Awas Yojana colonies with a license and approved service plans for four units per plot are also included. In areas where layout plans are approved for three residential units per plot, S+4 construction is allowed if the road width is 10 meters or more. However, the owner must obtain consent from neighbours. If consent is not given, the owner can still build by leaving a 1.8-meter space from the adjoining house. If a neighbour refuses consent, they will be ineligible to construct S+4 in the future. For plots already permitted to construct three floors and a basement, new S+4 permissions will not allow basement construction or load-bearing on common walls unless there is mutual consent among neighbouring plot owners. If an entire row of plots is constructed simultaneously, common wall construction is permitted. Plots auctioned by Haryana Urban Development Authority (HUDA) with purchasable floor area ratio (FAR) can either construct S+4 or request a refund of development rights. Refunds come with 8% interest from the application date and must be requested within 60 days of the refund order issuance. If a plot does not qualify for three or four-floor construction, the owner can get back the entire auction amount plus 8% interest from the refund request date. This application also has a 60-day submission window from the refund order date. An amount of Rs 1178.95 crore has been collected for S+4 approvals: Rs 689.8 crore by Urban and Village Planning, Rs 466.3 crore by HUDA, Rs 2.62 crore by HSIDC, and Rs 20.23 crore by Urban Local Bodies Department. This fund will enhance infrastructure in various sectors and colonies. The department will launch a portal to address S+4-related issues and provide public access to permissions and other relevant information. To prevent covering stilt areas, future building plan approvals or occupancy certificates will include conditions that if stilt areas are covered, approvals will be withdrawn. Standard operating procedures have been established for unauthorized S+4 constructions without building plan approval. Offenders can apply for compounding of offences to the competent authority. If no objections were raised during construction, permission will be granted within 90 days after recovering composition fees. If objections were raised by neighbouring plot owners during construction, they will have another chance to submit mutual agreements and consents. If consent cannot be obtained, the case will be decided through a speaking order. Unauthorized constructions can be compounded at rates ten times higher than those prescribed under the Haryana Building Code. Previously, FAR was allowed for up to 2.5 floors; additional floors required extra payment for FAR approval. The government has now increased rates by up to 25% for plots between 250 and 350 square meters. Additional Chief Secretary of Urban and Village Planning Department Arun Kumar Gupta, Director Amit Khatri, and other senior officers were present during this announcement. Source : The Economic Time INDIA

Punjab govt starts 3D mapping of land

7/6/2024 3:29:00 PM

Mohali: The Punjab government has started 3D mapping of the land provided for setting up of a new building of Dr B R Ambedkar State Institute of Medical Sciences (AIMS). The new building will come up near the Institute of Nano Sciences and Technology (INST) in Sector 81, where 28-acres of land has been finalised. The land has also been formally handed over to the Dr B R Ambedkar State Institute of Medical Sciences (AIMS). AIMS director-principal Dr Bhavneet Bharti said, “The 3-D mapping of the land is being done with a view to ensure best possible building layout plan for a medical college. Thereafter, a detailed project report will be prepared and work will be allotted for the construction of the building.” The project is already running behind schedule as after finalising the land last year, the project was to be started in 2023, but construction was delayed. The project is to be completed in 30 months, once started. At present, the medical college is operating from the premises of civil hospital building in Phase VI Mohali, and earlier, the land was earmarked at Jujhar Nagar, just behind the civil hospital for setting up of medical college. But due to non-favourable conditions, the land at Jujhar Nagar was scrapped. Three sites were shortlisted for the proposed medical college, near Phase VI; Medicity in New Chandigarh, and Sector 81, where the Punjab government had acquired 381 acres to set up an integrated Knowledge City in 2009. Source : The Economic Times , The Times of India INDIA

Experion Developers buys 8-acre land in Gurugram for Rs 400

7/6/2024 3:17:00 PM

Experion Developers, a realty firm, has purchased a 7.81-acre land in Gurugram for Rs 400 crore to develop a real estate project. The company, which is a fully FDI-funded real estate developer and a wholly-owned subsidiary of Experion Holdings Pte Ltd, Singapore, has acquired the land parcel in Sector 88A, Gurugram. According to a statement from Experion Developers, the 7.81-acre plot was acquired through an outright purchase for approximately Rs 400 crore. The project will have a built-up area of about 3 million square feet. In April, the company announced that it would invest about Rs 1,500 crore to develop a luxury housing project called ‘Experion Elements’ in Noida as part of its expansion plans due to a sharp rise in demand for residential properties. The company is developing around 320 housing units in this 4.7-acre project in Noida, Uttar Pradesh. In the first phase, around 160 units are being launched for sale. Experion Developers is engaged in developing township, housing, and commercial projects in Gurugram, Amritsar, Lucknow, and Noida. Source : The Hindustan Times INDIA

Haryana government announces new policy to convert residential plots to commercial

7/6/2024 3:07:00 PM

The Haryana cabinet has approved a policy that allows for the conversion of residential plots into commercial ones within planned schemes, according to an official statement. This move is seen as an attempt to address the evolving needs and demands within the urban development landscape. The Haryana Municipal Urban Built-Plan Reform Policy, 2023 was given a green signal at a state cabinet meeting presided over by Chief Minister Manohar Lal Khattar. Khattar stated that various planned schemes such as rehabilitation schemes and town planning have been implemented over the years in municipal areas to facilitate systematic urban development. These schemes were then handed over to their respective municipalities for management and maintenance. However, changing circumstances have led plot owners to convert residential plots for non-residential purposes, which were not originally permitted. In response to this trend, there arose a need to regulate such conversions by establishing norms and procedures. The new policy will apply to planned schemes within core areas of municipal limits excluding those developed by several bodies including Haryana Shahri Vikas Pradhikaran HSVP, Housing Board Haryana, Haryana State Industrial Infrastructure Development Corporation, and areas governed by Town and Country Planning Department Haryana. Application Process To apply for conversion under this policy property owners are required to pay certain fees including a scrutiny fee of Rs 10 per square metre, conversion charges as per the notification of the Town and Country Planning Department, development charges amounting to 5% of commercial collector rate per square metre along with a composition fee on converted area. All applications will be facilitated through an online portal developed by the Urban Local Bodies Department. Benefits & Regulations This policy is expected not only benefit property owners but also generate revenue for government from conversion charges and development charges. It would also help regulate commercial activities in planned areas, leading to better urban planning and development. Municipalities will conduct surveys to identify illegal commercial conversions and map road rights-of-way and affected plots. They will issue notices to property owners of illegal conversions, giving them 30 days to restore the property or apply for regularisation. Source : The Economics Times INDIA

Himachal Pradesh's New Township Plan Near Shimla

7/5/2024 5:08:00 PM

Himachal Pradesh government has declared to construct a township at Jathia Devi in Shimla. The proposal of this township has already been submitted to the Ministry of Housing and Urban Affairs. The proposed cost of making this township including the land acquisition of Rs.1374 crore. According to the statement of town and country planning minister Rajesh Dharani's written statement to Congress MLA Sudhir Sharma. The Town and Country Planning (TCP) Department has created the Jathia Devi Planning Area by excluding 177 villages from the Shimla Planning Area. He also added that, the ministry of housing & urban affairs will contribute Rs. 512 crore and state govt will pay Rs.862 crore. A contract was additionally entered into with a Singaporean firm for the establishment of the township, but the former BJP administration discontinued the undertaking. Notably, the BJP government had resolved to vend plots and apartments to be constructed by the HP Urban Development Authority (HIMUDA) at this location. Intriguingly, the Shimla Draft Development Plan also encompassed a proposition for four satellite townships in the outskirts of the state capital, namely Ghandal, Naldehra, Fagu, and Chamiyana. Nevertheless, the implementation of the plan was deferred due to judicial directives. Dharani also added that, an intra state bus terminal has been proposed within the project area. The entire township is spread across a land parcel of 135 hectares and it will have three residential zones for HIG, MIG and LIG. Within this area, 16.56 hectares will be used for green zone/river development zone along the existing nullah, 13.36 hectares will be used for commercial development and projects 16.42 hectares will be used for constructing recreational green zone. Source: The Economic Times Chandigarh

DLF's net profit increases by 61.49% in Q4 FY24

7/5/2024 5:02:00 PM

DLF witnesses an increase of 61.49% in its net profit for the Q4, Fiscal Year 2024 Delhi Land & Finance developer has published a splendid net consolidated total income of Rs 2316.70 cr in Q4FY24 when corresponding to the previous year’s collection at Rs 1575.70 cr in quarter 4th. DLF, India’s well-known real estate company, has reported a profit after tax growth at Rs 919.82 cr in Q4FY24, in comparison to its Rs 569.50 cr profit after tax in the corresponding quarter of the previous fiscal year 2023. Also, the DLF’s consolidated net income in the fiscal year 2024, quarter fourth stood at Rs 2,316.70 cr against the reported collection of Rs 1,575.70 cr in the FY23, same quarter. ‘’Development business record sales booking of Rs 14,778 cr during the year. We plan to launch more than 11 million square feet of new products during FY25 targeting various markets including Gurugram, Mumbai, Goa and Chandigarh Tri-City. The estimated sales potential of these launches is approximately Rs 36,000 crores,’’ stated the company via its press release. Further, the company voiced several other results such as cash flow from operations and the future plans and sales potentials in the Millenium City ‘Gurugram. ‘’We remain focused on cash flow generation and consequently generated a record cash flow from operations of Rs 4,385 cr during the year. We acquired a strategic opportunity in sector 61, Gurugram offering a sizable potential of approximately 7.5 million square feet and an estimated sales potential of more than Rs 20,000 cr,’’ the Delhi Land & Finance (DLF) said in the press release. DLF has also successfully worked to get approval for the scheme of fusion between DLF Estate Developers, Kirtimaan Builders, Ujagar Estates, Alankrit Estates, and Tiberias Developers with the DLF utilities, by the National Company Law Tribunal - Chandigarh Bench. The Retail business of the DLF glimpsed an 18% YOY growth rate during the same period ie., the fourth quarter of FY23. Source: The Economic Times Chandigarh

How the Indian real estate sector drives the nation’s economy

3/24/2023 3:08:00 AM

While a lot of impetus is being given to developing India into a global manufacturing hub, the role of the domestic real estate sector in generating employment, adding real economic value, and its add-on effect on other industries is often overlooked. In fact, the real estate industry is the second-largest employment generator after agriculture and has been contributing about 11% to Gross Value Added (GVA) growth since 2011-12. A critical engine of growth and employment, with both forward and backward linkages, it is estimated that nearly 50% of India’s GDP is linked with the domestic real estate sector. Employing a large labour force in nation building Construction and allied activities absorb a large number of skilled and unskilled workforce, with many being employed from rural hinterlands where agriculture continues to remain the only source of employment. According to conservative estimates, nearly 70 million Indians are employed in the real estate sector as of 2022, with the overall sector slated to surpass the $1 trillion mark by 2030. What’s more, with the implementation of the RERA Act, sprucing up of labour laws, and a stark improvement in overall compliance, those engaged in the Indian real estate sector are benefiting from the large strides being made in recent years. Providing demand for key supplier and ancillary services industries With more than 270 allied industries being dependent on the real estate sector for business sustenance, this important sector has an important add-on effect along the entire supply chain. Key supplier industries like steel, cement, timber, and construction materials as well as ancillary services industries such as design, contracting, facility management, leasing & property consultancy are some prime examples. As activity in the real estate sector ramps up, there will be a wider positive multiplier effect on associated industries and those engaged in them. Driving rapid urbanization with critical housing and commercial infrastructure The rapid pace of urbanization has been a key driver of India’s economic growth over the past few decades, with urban centres such as Bengaluru, Mumbai, NCR, Pune, and Hyderabad attracting human and economic capital en masse. The real estate sector in conjunction with local governments, private developers, and infrastructure companies has played a key role in this transformation. With India slated to reap the benefits of its rich demographic dividend till at least 2050, the task of sustaining this rate of urbanization and creating the necessary infrastructure to support the country’s large young workforce will fall on the Indian real estate sector. Moreover, premiums, development and approval charges accruing from real estate related activity will continue to be a major revenue source for local government bodies and state governments, facilitating further socioeconomic development across the length and breadth of the country. Facilitating large foreign investment inflows that drive further growth With the real estate sector providing important infrastructure that remains pivotal to fuelling the Indian growth story, high-quality real estate projects and firms involved in their construction are attracting strategic and foreign investments in the country today. Capital inflows from marquee private equity (PE) firms and other foreign entities swelled to $24 billion between 2017 and 21, recording a 200% growth as compared to the preceding five-year period. Verticals such as warehousing, industrial parks, and data centres are also expected to give the Indian economy a much-needed boost as both domestic and international players rush to set up their distribution centres in the country today. An important asset class and source of wealth for millions of Indians As more Indians are deploying their savings into wealth creation avenues that can also significantly improve their lifestyle, both residential and commercial real estate are increasingly gaining precedence over other traditional asset classes like fixed deposits or gold. In fact, the real estate sector has traditionally been a major asset class and source of wealth creation for Indians, with new-age products such as REITs appealing to younger investors who are still not ready to buy their first home. The real estate sector remains a key source to channel savings for crores of Indian households, with recent improvements in the regulatory environment only adding to consumer confidence. Source: Financial Express INDIA

'Indian Real Estate Emerging As Preferred Investment Option Amid Market Volatility'

3/7/2023 12:45:00 PM

The real estate in India is currently rapidly emerging as an investment of choice by the increased number of investors, both Indian and NRI, in a background of market volatility and equity markets stagnating amidst increasing inflationary pressures. Due to the attractive rental yields and the potential for further price appreciation across India in both the metros and other cities, real estate is seen as a good bet. Rapid urbanisation and a rising population contribute to increased demand for affordable housing units in major Indian cities. Despite real estate prices already appreciating between 10 per cent and 30 per cent across India in 2022, India’s growth story is attracting venture capital (VC) interest across segments of the Indian real estate sector. In a recent survey conducted by the CII, 59 per cent of respondents are strongly inclined to invest in real estate, while only 28 per cent continue to prefer investing in Indian equity markets. Nagpur, Coimbatore and Indore have the highest year-over-year rental demand, propelling the growth of India’s commercial real estate sector. This expansion is also evident in the office leasing market, which is anticipated to increase by 10 per cent to 15 per cent in the coming fiscal year. Some of the factors impacting this trend include: Growing Social Infrastructure in Tier-II and Tier-III cities A significant trend has been the rising demand for modern office space and the emerging trend of urban and semi-urban housing. In addition, the expanding e-commerce sector in the country is driving up the demand for storage facilities, which is providing a boost to the market. In addition, the increasing use of telecommunication services, the implementation of 5G standards, and the localisation of data have increased the demand for data storage facilities. In turn, this positively affects the demand for resilient data centre infrastructure, bolstering the market growth. Increased acceptance of hybrid models in 2022 has resulted in a huge upsurge in major cities for office space. According to a survey, the office market’s net absorption in the top-7 cities, including Mumbai, Bengaluru and Hyderabad, reached a three-year high of 38.25 million square feet in 2022. Moreover, the net absorption for 2022 has exceeded the five-year pre-pandemic average (2015-2019) by 3.1 per cent, demonstrating the robustness of the Indian office markets. Increased acceptance of hybrid models in 2022 has resulted in a huge upsurge in major cities for office space. According to a survey, the office market’s net absorption in the top-7 cities, including Mumbai, Bengaluru and Hyderabad, reached a three-year high of 38.25 million square feet in 2022. Moreover, the net absorption for 2022 has exceeded the five-year pre-pandemic average (2015-2019) by 3.1 per cent, demonstrating the robustness of the Indian office markets. Increase in NRI Investment Foreign and domestic investors are capitalising on this growth, particularly in their own cities, with millennials comprising roughly half of these investors. Not only commercial real estate but also ultra-luxury apartments and vacation homes have seen an increase in investor interest. The strengthening of the dollar against the rupee incentivises investors to enter the domestic market with enhanced purchasing power. Newer proptech platforms have contributed to this growing interest by revolutionising the real estate industry and enabling the seamless onboarding of individuals regardless of their geographical location. This will continue to attract non-resident Indians to India’s real estate market. Changes in Policy Environment Aside from this, various initiatives undertaken by the Indian government, such as investments in smart city projects and tax exemptions for housing loan interest, are anticipated to create lucrative business opportunities for industry investors in the country. By 2030, the demand for Grade-A premium office assets in India is projected to reach 1.2 billion square feet. This expansion is fuelled by various factors, including a high return on investment, increased NRI and FDI investment, and strengthened government initiatives. Increased Demand for Ultra-Luxury Units and Vacation Homes With rising household incomes and an increase in the number of Indians among the world’s wealthiest individuals, the ultra-luxury residential real estate market has been booming, with demand frequently exceeding supply. Even in markets such as Mumbai, Delhi, Bengaluru, and Kolkata which have historically had a healthy pipeline of such units, consumers are increasingly opting for projects with amenities comparable to those provided by international developers. This shift in consumption habits has prompted Indian real estate developers to launch new luxury housing projects that cater to this expanding group of domestic investors. Other key factors, such as India’s emergence as a global IT power, the growth of the e-commerce industry, etc., would result in a significant increase in demand for spaces such as data centres and sophisticated warehouses. Commercial spaces will increase in Tier-II and Tier-III cities in 2023, acting as a significant employment-creating catalyst. In 2022, the office, warehouse, residential, and retail real estate sectors collectively attracted private equity investments totalling $5.1 billion. This demonstrates the industry’s optimism regarding the sector’s growth. However, the developer community must look to achieve the same construction and design standards as developed nations. Increased focus on raising capital through additional channels, such as real estate investment trusts (REITs), attracting more Indians to actively invest in the country’s real estate economy. With REITs providing proportional ownership of income-generating real estate assets, more Indian developers will need to establish their own REITs, educate investors on their potential for long-term value creation, and seek more investments via this route. This will attract more foreign investment and leverage the country’s large population to establish a sustainable financing model that will propel the Indian real estate industry to new heights in 2023. Source: News 18 INDIA

Key Indian property markets see 5-7% rise in housing prices in March quarter

3/4/2023 4:07:00 AM

Residential real estate has continued to witness firm growth in demand and conversion across India’s key property markets during the quarter ended March with a steady rise in prices. This also marks the fifth consecutive quarter of year-on-year growth in prices across all markets. Even in sequential terms, prices have either remained steady or grown across markets during the quarter. Prices have grown significantly across most markets led by Bengaluru, Mumbai, Chennai, and Hyderabad with 5-7% appreciation, showed data from Knight Frank India. The residential market has stepped into 2023 on a stable footing with the first quarter of the year registering sales of 79,126 units, up 1% from a year ago when home loan rates were at record low of 6.6% as against 9% now. Sales grew the most in the Hyderabad market at 19% from a year ago while slipping slightly in the larger markets of Mumbai and Bengaluru at 6% and 2%. “Given the cautious but optimistic sentiment in the market, we do not believe that home loan rates approaching 2019 levels (9.2%) will be enough to subdue market momentum significantly. The performance of the broader economy and homebuyer sentiment will have a greater bearing on market momentum in 2023 as it dictates homebuyer income levels and demands much more directly,” said Shishir Baijal, CMD, Knight Frank India. Consistent with the upward trend seen in the past three quarters, the share of sales in the Rs 1 crore and above ticket-size grew to 29% from 25% a year ago given the homebuyers’ need to upgrade to larger living spaces with better amenities. The share of home sales in the Rs 50 lakh to Rs 1 crore category also grew 38% from 35% a year ago. The share of the Rs 50 lakh and below ticket size, however, deteriorated from 41% a year ago to 32% during the quarter, as rising prices, higher interest rates and a comparatively more adverse impact of the pandemic on homebuyers in this segment continued to weigh on demand. “Rising interest rates have certainly impacted the sales of rate-sensitive segments of affordable and low-income group housing. The 2.5% increase in repo rate in a short span since last May has increased the homebuyers’ burden. Real estate industry has linkages with over 260 other sectors and therefore impacts the entire economy. We hope that the central bank will take cognizance of this in the upcoming policy meeting,” said Sandeep Runwal, President, NAREDCO – Maharashtra. Homebuyers have been more inclined to purchase ready or near-ready inventory to minimise completion risk earlier. However, the heightened demand over the past few quarters has depleted the inventory, and consumers are now increasingly willing to acquire newly launched properties at relatively lower prices. This is reflected in the average age of inventory decreasing to 16.7 quarters during the quarter from 16.9 quarters a year ago. The unsold inventory level has increased 6% from a year ago as fresh development activity has intensified. However, the Quarters to Sell (QTS) level has dropped to 7.2 quarters as of March end on the back of heightened sales, compared to 9.1 quarters a year ago. The QTS level represents the number of quarters required for the existing unsold inventory to be consumed at the current rate of sales. A reducing QTS level depicts a market where demand is gathering momentum. Mumbai recorded sales of 20,300 new homes during the quarter, highest among the top eight markets. While still robust, sales were lower 6% on-year when compared to a strong year ago period when impending metro cess implementation had also bolstered sales. Besides, Mumbai is the most unaffordable market in India and the recent spate of price increases and rate hikes will be felt more acutely here. However, launches have continued unabated with 9% rise. The prices rose 6% indicating the momentum in the market. The Delhi-NCR market witnessed stable demand as sales rose marginally 2% to 15,392 units, while launches rose 12% to 14,486 units. The prices have appreciated at a steady pace of 3%. In Bengaluru, average prices rose 7%, a testimonial to the underlying confidence of the market. The number of units sold reduced marginally by 2% to 13,390 units, while launches were second highest in the top 8 cities at 12,073 units, up 19%. The resilient Hyderabad market experienced substantial growth despite the rate hikes and concerns around economic slowdown as it saw 19% rise in sales at 8,300 units during the quarter. New launches rose 7% to 10,986 new units, while prices grew 5%. Source: The conomic Tmes

Aspiring millennials to drive the real estate market in 2023

3/3/2023 3:06:00 AM

Driven by the limitless ambitions of its youth, New India is shining brighter than ever before. This millennial generation is not shackled by the doubts and fears of its predecessors, but rather soars on the wings on determination and self-assurance. While previous generations believed in renting homes and buying a home after reaching a certain age, the millennial demographic refuse to compromise on buying the home of their dreams. Millennials contribute 34% of India’s population, which is close to 440 million people. Next generation of homebuyers that is driving the real estate growth in 2023 he pandemic has changed their mind set in more ways than one. Millennials are now keener than ever to invest in the real estate market. Even in the wake of geopolitical uncertainties, the demand for real estate has continued to rise due to the sanguine outlook of the millennial homebuyer. In the era of globalisation, this generation enjoys the highest purchasing power than any generation before. The aspirational millennial is more aware than ever before of the value of real estate as an investment. Indian millennials are a very important market. They are in their peak buying years and have easy access to home loans. This demographic contributed to over 50 percent of homes sold in 2020, and they were a major driver in the Indian real estate market crossing the mark 54% in 2022. Extrapolating these growth trends, the Indian real estate sector is forecasted to cross 1 trillion dollars by 2030, which will contribute to over 13 percent of the national GDP. Paradigm shift in the way residential properties are developed across India Unlike their previous generations, millennials have a quintessential approach to buying property. Unlike their predecessors, they see a house not just as a commodity but as an indulgent investment, and therefore they have specific needs and expectations when it comes to choosing a home. Discerning, demanding and determined, this generation expects the real estate properties that are integrated with modern and smart amenities at par with the global standards. Their hopes and dreams are bound only by their fearless audacity to aim higher than any generation that came before them. Millennials want smart spaces that allow them to work from home, while also offering expansive green open spaces, culturally vibrant entertainment zones, wide balcony areas, My spaces for mee time and secure and sophisticated digitally-enabled surveillance systems. Additionally, they seek homes that offer a complete integrated living experience, with diverse amenities that make daily life easier and entertaining. These include a plethora of facilities such as engaging clubhouses, children-friendly pool decks, gymnasiums, diverse fitness studios, state-of-art libraries, spacious community halls, and integrated sports complexes. Digitally-inspired generation Millennials are digitizing the home buying experience. From virtual tours to digital appraisal scheduling and from virtual inspections to remote notary services, millennials prefer to have digital closings of their prospective homes. As millennials are also twice as likely to shortlist their dream homes on their mobile phones than the past generations, all this is now a staple of the tech savvy generation. Proximity to workplace is no longer the first priority, but connectivity is the top criteria for buying a home now. The highly ambitious millennial generation is no longer ready to compromise on a certain level of comfort and lifestyle. This has created a specific demand for real estate properties that provide modern luxuries, while being intricately connected with social infrastructure facilities. Homebuyers today are looking for modern residential properties that provide them with logistical convenience by being located near their offices, are in close proximity to shopping high street /malls and entertainment venues. Leading real estate developers have pivoted in alignment with the needs of the millennial homebuyers and are developing premium residential properties to cater to the demand for the modern integrated lifestyle. In recent years, there have been a flurry of residential projects launched in highly posh localities, which include luxury and premium luxury gated communities. In terms of the millennials’ buying preference, the focus has shifted from compact homes to Smart Homes. Incorporating Internet-of-Things (IoT) and virtual home regulation systems, these new age smart homes are designed specifically for the requirements of the millennial homebuyers. These aspirational millennials place a high valuation on social connectivity and integration. This translates into young homebuyers preferring residential areas that provide a strong sense of community living. The best real estate developers are eager to meet this demand and are constructing residential complexes that are furnished with communal features like shared lounges, co-working spaces, clubhouses and dedicated community-gathering arenas. Millennials are prioritizing health and hygiene above all else They are looking for homes with open green spaces. The next generation of ambitious homebuyers are willing to pay a higher premium on living a sustainable and healthy lifestyle. Millennials do not consider environmental sustainability a premium luxury, but rather a basic necessity. While uncompromising on social amenities, they are equally unrelenting on environmentally conscious building practices. When it comes to ecological sustainability, millennials are willing to go the extra mile for their future. Asset classes that incorporate renewal energy through solar panels, conserve water through integrated rainwater harvesting systems, and safely dispose domestic waste through organic waste management systems are more preferred by millennials than other discounted properties. Millennials refuse to put a price tag on their futures. Modern real estate developers are now more sensitised than ever before in creating enhanced projects, which are certified by global environmental standards. Aesthetics of the property are meticulously intertwined with eco-friendly elements in order to appeal to a younger demographic of homebuyers. The real estate industry is undergoing a significant change driven by the aspirations of the millennial generation With a significant increase in purchasing power and an illimitable desire to achieve a modern holistic lifestyle, more and more millennials are investing in integrated real estate properties. While 66 percent of millennials have stated that investing in home ownership is a stable long-term investment, 30 percent have cited social status as another motivating factor that led them to invest in homes. The desire for deluxe housing reflects the millennial mind set. They do not rush into buying a home. They wait before taking the plunge and invest in premium quality product. The growth of the global real estate market depends on this shifting trend, which grew to 4000 billion dollars in the last year, which is a growth of 7 percent worldwide. Studies have shown that the millennial generation is the most confident generation when it comes to financial literacy and will push the global real estate market to 5200 billion dollars by 2027. Though buying a home is never an easy decision, the millennial generation are more than ready to invest in their luxury dream homes. They are now ready to plant their roots and more than happy to own real estate. Millennials are no longer the “rent generation”. As current market trends are extrapolated towards future horizons, it can be forecasted with reasonable certainty that this trend is highly likely to continue into the perceivable future. By understanding the needs and expectations of the millennial demographic, modern real estate developers in India are impeccably poised to lead the real estate growth in 2023 and beyond. Source:financial express INDIA

Centre begins process to modernise Mohali SCL

10/18/2022 2:03:00 PM

The Semiconductor Lab (SCL) at Mohali, the only government-owned semiconductor fabrication unit, will be one of the beneficiaries of the Central Government’s $10 billion semiconductor incentive package. The government plans to modernise and upgrade it for making semiconductors, which are used in display panels of smartphones, laptops, TV screens, weapon systems and automobiles. For the modernisation plan, the Ministry of Electronics and Information Technology (MeitY) has floated a request for proposal (RFP). The SCL was handed over to MeitY in February this year from the Department of Space. The SCL started production in 1984 but was devastated by a mysterious fire in 1989 and thereafter never recovered fully. It produces chips for strategic purposes. For instance, a 180- nanometre chip, along with other chips researched and fabricated at the SCL, have been used to power the country’s Mars Mission. According to the RFP, the selected bidder will act as an adviser and also be responsible for identification of business partner for modernisation and commercialisation of the SCL. As per the terms of the RFP, the bidders shall strategise the execution roadmap. Besides, the bidders also need onboard a commercial partner for the fabrication of chips developed by the SCL. “The bidders will also be responsible for development of business plan, go-to-market strategy and design of operating model, including identification and assessment of top list of potential partners (both Indian and global) across the semiconductor value chain,” said sources. “The SCL is responsible for design and development of very-large-scale integration (VLSI) devices and development of systems for the telecommunication and space sectors. The government is modernising the existing SCL as part of the effort to set up a latest manufacturing facility for making semiconductors,” said Rajya Sabha member Vikramjit Singh. On December 15, 2021, the Union Cabinet accorded approval for the modernisation and commercialisation of the SCL, which includes exploration of the possibility for a joint venture (JV) with a commercial fabrication partner(s) to modernise the brownfield fabrication facility. Semiconductor lab Timeline 1984: SCL starts production 1989: Unit consumed by mysterious fire 1997: Restarted again 2006: Converted to Semiconductor Laboratory under the Department of Space from Semiconductor Complex Ltd 2021: Cabinet accords approval for modernisation 2022: Handed over to MeitY from the Department of Space Source: The Tribune INDIA

Chandigarh international airport renamed after Bhagat Singh

9/29/2022 2:10:00 PM

The Ministry of Civil Aviation today renamed Chandigarh International airport as ‘Shaheed Bhagat Singh International Airport’. Finance and Corporate Affairs Minister Nirmala Sitharaman unveiled the plaque at Mohali and paid tributes to the national icon on his 115th birth anniversary. Punjab Governor and Chandigarh Administrator Banwari Lal Purohit, Haryana Governor Bandaru Dattatraya, Punjab CM Bhagwant Mann, Haryana Home Minister Anil Vij, Anandpur Sahib MP Manish Tewari, Chandigarh MP Kirron Kher and Minister of State for Civil Aviation Dr VK Singh were also present on the occasion. Haryana Deputy CM Dushyant Chautala says both Punjab and Haryana rose above all considerations to rename the airport after the freedom fighter’s name. Chautala proposed a bust of Shaheed Bhagat Singh to be installed here before the Martyrdom Day on March23. Punjab CM Bhagwant Mann sought permission from Civil Aviation ministry to increase international flights from the airport. With the renaming, the long pending demand to add Mohali, Chandigarh and Panchkula in the nomenclature has been laid to rest. Three days ago, in his Mann Ki Baat radio broadcast, PM Modi said the Chandigarh airport will now be named after Shaheed Bhagat Singh as a tribute to the great freedom fighter. Chandigarh International Airport Limited (CHIAL) is a joint venture company incorporated under the Companies Act, 2013 by Airports Authority of India (AAI) in association with governments of Punjab and Haryana. The airport runway is in Chandigarh while the international terminal is located on the south side of the runway in the village of Jhiurheri in Mohali. The AAI has a 51% share in the project. Punjab and Haryana have contributed 24.5% each. Source: The Tribune INDIA

Festive season, a big boost for residential real estate

9/24/2022 1:20:00 PM

The festive season beginning from Ganesh Chaturthi and culminating in Christmas, and the arrival of the new year is considered to be an auspicious time to invest in residential real estate. The season, which is a much awaited time of the year when home buyers opt for high-ticket purchases, gives a significant thrust to the real estate sector and is marked by the launch of new projects, combined with a spectrum of benefits to attract home buyers. This is a time when demand sees conversion as home buyers prefer going ahead with planned purchases. The need for stability and security emerging as high priority in the minds of people is also a factor that will pep-up residential real estate. A big booster to housing demand has been the increased importance of owning a property backed by consumer confidence in the overall economic scenario. The trend of the Indian festive season becoming the annual high point for residential real estate originates from traditional sentiment and is the right time to invest in wealth-creating assets. There is a healthy stock of ready-to-move-in and nearing-completion inventory that will be of high interest during the festive season. The current home loan interest rates are unlikely to compress the sustainable housing demand as the price band is still within a line of control. Rising home ownership amongst millennials supported by higher disposable income and willingness to upgrade to larger, luxurious spaces, equipped with better amenities have also sparked a sharp growth in housing demand. We are seeing a lot of home buyers who are eager to conclude deals in this auspicious season. The market continues to experience end user-driven demand and we are already witnessing a trend of more serious buyers closing sales. As per a recent report, the residential sector has recorded a 9-year high sales volume in January-June 2022. A defining feature of today’s housing demand is that even millennials are now in the market for home ownership as real estate has become the most sought-after asset class. With strengthened consumer sentiment and buoyancy in the market, the real estate sector has an optimistic outlook going forward. The sector has been riding strong for the last few months and is likely to maintain this momentum. The growth of the Indian real estate sector is well complemented by the growth of the corporate environment and the rising demand for improved lifestyles and better residences. Customers are also increasingly stepping ahead to invest in their dream properties offered by developers, which match their opulent lifestyle and needs. The biggest factor driving people to buy homes today is their experience during the Covid-19 pandemic and lockdown. It has made people rethink their priorities and hence owning a home has gained importance as it spells comfort and security. The end user-driven property market is experiencing a home buying rally and today, a rise in savings and market stability has encouraged home buyers to take the plunge. The past few months have been testament to the fact that home buyer optimism is at an all-time high as customers understand that they have various options and are able to make self-assured purchase decisions. In conclusion, it can be said that revival in market sentiment against the backdrop of vibrant economic activities makes this season more attractive. However, while investing in property, buyers should not only look at attractive deals, but also consider the reputation of the developer and other factors like location, execution capability, and amenities that the developer has to offer. As we march ahead, the industry is set to see a new phase of steady growth, which is a positive sentiment for those looking to invest this season. Real estate is always a wise asset class given that it sees consistent appreciation. Source: Times of India INDIA

Housing sale in tier 2 cities growing at rapid pace: Report

9/21/2022 10:27:00 AM

Ahmedabad, Vadodara, Nashik, Gandhi Nagar and Jaipur have emerged as the top five tier-II cities in growth of residential property market on the back of rapid urbanisation, industrialisation and growth of IT industry, according to recent report by real estate data analytics and consultancy company, PropEquity. The report highlights that there has been a remarkable jump in both absorption as well as supply of quality residential properties in various price brackets in these cities. The report has tracked performance of the residential segment of the real estate sector in various tier-II cities from FY 2017-18 to FY 2021-22. “The real estate activity in tier 2 cities is fast catching up with that of tier 1 cities. Interestingly, Ahmedabad’s residential real estate market size of Rs 83,390 crore has outshone some of the Tier 1 cities like Chennai and Kolkata with market sizes of Rs 52,554 crore and Rs 38,440 crore respectively at the end of fiscal year 2021-22. Although, it is also interesting to observe that the market share of Tier-I cities is about 4x times the share of Tier-II cities in the last five fiscal years . ,” said Samir Jasuja, Founder and Managing Director at PropEquity. This report tracked the current residential real estate scenario in India with focus on the top Tier II cities. The duties that were part of the study are Amritsar, Mohali, Chandigarh, Panipat, Dehradun, Bhwadi, Sonepat, Jaipur, Agra, Lucknow, Bhopal and Indore, Vishakapatnam, Vijaywada, Guntur, Goa, Manglore, Mysore, Coimbatore, Kochi, Trivandrum, Raipur, Bhubaneshwar, Ahmedabad, Gandhi Nagar, Vadodara, Surat, Nashik and Nagpur. “Post COVID lockdowns, tier 2 cities have been witnessing new job creation at a decent rate and many tech and other sector companies are encouraging work from home for their employees for at least next couple of years. This had led to scenario where tier 2 city housing projects are getting great traction due to their attractive pricing and potential for a higher upside in terms of investments,” Abhishiekh Andlay, Founder, Andlay Estates, said. The sales of homes in Ahmedabad stood at 39,046 units in fiscal year 2021-22, a growth of 26% as compared to financial year 2020-2021. When compared to fiscal 2017-18, a growth of 32% was witnessed in the city. The supply of homes in Ahmedabad stood at 39,195 units in financial year 2021-22, a growth of 14% as against fiscal year 2020-2021. Second ranked Vadodara witnessed a growth of 25% in sales of homes at 17,285 units in fiscal 2021-22 as compared to the previous fiscal. When compared to financial year 2017-18, a jump of 20% was seen. The supply of new homes stood at 15,046 units in fiscal 2021-22, an increase of 9% as against the previous financial year. Third ranked Nashik witnessed sales of 10,806 units in fiscal 2021-22, a growth of 15% on year-on-year basis. New supply of homes in Nashik stood at 13,037 units in 2021-22 fiscal, a whopping growth of 68% as compared to the previous fiscal. Fourth ranked Gandhi Nagar saw sales of 7,650 units in fiscal 2021-22, a growth of 10% as compared to the previous fiscal. New supply of homes in Gandhi Nagar stood at 6,361 units in the financial year 2021-22, a drop of 30% on a year-on-year basis. Fifth ranked Jaipur saw sales of 7,676 units in fiscal 2021-22, a whopping growth of 42% as compared to the previous fiscal. New supply of homes in Jaipur stood at 7,022 units in the financial year 2021-22, a massive increase of 78% on a year-on-year basis. The inventory of homes in Jaipur stood at 14,529 units at the end of fiscal 2021-22, a marginal dip of 4% when compared to the previous fiscal. It will take 23 months to clear at the current rate of sales. Source: Economic Times INDIA

Indian retail sector expected to get first Real Estate Investment Trust: Report

9/19/2022 10:58:00 AM

India is expected to get its first Real Estate Investment Trust (REIT) of retail assets soon as institutional investors and developers look to monetise their rent-yielding space in shopping malls, according to JLL India. REIT, a popular instrument globally, was introduced in India a few years ago to attract investment in the real estate sector by monetising rent-yielding assets. It helps unlock the massive value of real estate assets and enable retail participation. At present, there are three listed REITs - Embassy Office Parks REIT, Mindspace Business Parks REIT and Brookfield India Real Estate Trust - on Indian stock exchanges but all these are of leased office assets. Property consultant JLL in its latest report on retail real estate segment highlighted that institutional investment in the retail sector has been picking up since 2021. More than USD 862 million investments have come from 2021 (excluding portfolio deals). Many global investors are investing in the retail sector either by buying a stake in existing assets or through greenfield development platforms. "The retail market seems to benefit from favourable demographics, rapid urbanisation, and rising consumption," the consultant said. The report noted that investors are expecting healthy returns in the long run, considering the growth potential. Also Read | How Can You Save With Real Estate Express Coupon Code? "Investors are looking for quality Grade A assets by established developers having less vacancy. Investors prefer leased-based assets over strata-sold assets to ensure fair market rentals and timely returns," it said. The consultant also mentioned that investment in retail assets is not just limited to metros, as significant activities have been recorded in Tier 2 and Tier 3 cities as well. "Additionally, investments by these big institutional players help developers to exit the project partially or fully, reduce their debt, and focus on other developments. A lot of foreign funds are willing to acquire quality retail assets yielding good rental income," the report said. Investors are either buying or creating portfolios considering future public exit via REITs. "REITs are still relatively new in India and are prevalent in the office sector. India is expected to get its first retail REIT soon. With quality supply in the pipeline and new malls announced by established developers, the Indian retail sector is expected to attract more institutional investment," JLL India said. REITs in retail will be the next big move in the sector as institutional investors are building portfolios of superior-grade retail assets, it added. JLL India cited few examples of institutional investors creating large retail real estate portfolio. Nexus Malls acquired Forum Malls as part of a USD 1.2 billion deal between Blackstone and the Prestige Group to take over the income-generating retail assets of the latter. Abu Dhabi Investment Authority-backed Lake Shore India Advisory has acquired Viviana Mall in Thane from GIC and realty developer Ashwin Sheth Group for over ₹1,900 crore, the report said. That apart, Singapore sovereign wealth fund GIC and The Phoenix Mills Ltd have entered into a strategic partnership to establish an investment platform for retail-led mixed-use assets in India. The consultant expects leasing demand in malls to expand and surpass pre-pandemic levels by 2023. The inherent growth potential of the sector is quite robust, and institutional investment is expected to increase it further. This would bring more transparency and improvement in the operating environment of shopping malls, JLL India said. On the overall supply situation, JLL said that the stock of Grade A shopping malls in the top seven cities of India (Delhi, Mumbai, Pune, Bangalore, Kolkata, Chennai, and Hyderabad) is at 90.6 million sq ft in H1 2022. More than 50 per cent of the mall stock is in Delhi NCR (29 million sq ft) and Mumbai (19 million sq. ft). More than 70 shopping malls with a total retail space of 31.02 million sq ft are expected to become operational by 2025 across the top seven cities of India. Source: Hindustan Times INDIA

Leasehold to freehold conversion: SC gives MHA, Chandigarh admn 3 months to take decision

9/18/2022 1:31:00 PM

The Supreme Court has given three months to the Chandigarh administration and the ministry of home affairs (MHA) to decide on allowing conversion of commercial and industrial leasehold properties to freehold. On August 29, the Supreme Court had summoned Union home secretary Ajay Kumar Bhalla in court on September 16 if a decision on the issue was not taken. After Bhalla was summoned, UT administrator Banwarilal Purohit on September 6 had held a press conference, announcing that the decision lied in UT’s domain and will be arrived at soon. Later, Purohit sent UT adviser Dharam Pal to Delhi to discuss the issue, but a consensus could not be arrived at and MHA opted for seeking exemption from personal appearance of the home secretary at the September 16 hearing. “This being a major policy decision, the matter is being considered by MHA as per the established legal procedure and consultation with all stakeholders concerned,” the MHA said in court, seeking three more months to examine the matter, which was eventually allowed. Chandigarh has 6,621 commercial and 1,451 industrial plots on leasehold, which allows occupation for a limited period, mostly 99 years, with government agencies holding the ownership rights. Apart from legal complications, the allottees struggle with their sale and purchase, and raising a mortgage when needed, issues normally not associated with freehold properties where the allottee is the real owner. Earlier in July, the UT had put the onus on the Centre for delay in reaching a decision on the issue. The UT had first sent the conversion proposal to the MHA in April 2021 on the pattern of the residential policy of 1996. Subsequently, it even sent four reminders to MHA, but a decision was still pending, UT had told the court. In September last year, the apex court had directed the administration to constitute a committee to review and streamline the processes of sanction of mutation, grant of occupancy certificate, no-objection certificate and other citizen-centric requirements, including calculation of unearned profit under the 1973 or 2007 rules. The dispute before the SC was taken up by the Estate Office against a consumer court order in which it was penalised on the complaint of a city resident on an issue related to allowing conversion of leasehold property to freehold. The court had ordered that the committee would submit its report to the administrator and the UT administration. In compliance with the order, the administrator constituted the committee on October 5, 2021. The committee had made the first set of recommendations in February and submitted the second set of suggestions recently in July. Several amendments in property-related matters have been made since the first set of recommendations, and UT has submitted four action-taken reports in March, April, May and July before SC, while putting the onus on the Centre for delay in resolving some key issues. Source: Hindustan Times INDIA

Punjab government to come out with real estate policy to check unplanned development

9/13/2022 1:15:00 PM

CHANDIGARH: Punjab government will come out with a comprehensive real estate policy to check illegal and haphazard development in urban areas, said Housing and Urban Development minister Aman Arora on Monday. Arora on Monday presided over a meeting with senior officials of the revenue and rehabilitation department, and real estate developers here, according to an official release. The cabinet minister assured the developers that all their legitimate demands will be considered sympathetically and he will discuss them with the chief minister. He asked the developers to make sure that the interests of property buyers are protected. Arora accused the previous governments of creating a mess in the name of urban development, which, he alleged, resulted in mushrooming of around 14,000 illegal colonies in the state. The government is fully aware of all the problems being faced by the common man and it will bring a comprehensive policy to "clean this messy system" and will ensure planned development in the state, said the minister. On making no objection certificate (NOC) compulsory for property registration, the cabinet minister said this issue will be resolved soon. He said the state government's three departments - housing and urban development, revenue, and local administration - are working in tandem to sort out the issue at the earliest. Source: ET Realty INDIA

India’s real estate sector to reach $1000 billion by 2030: Thriving and yielding consistent returns

8/31/2022 3:14:00 PM

The good times continue to roll in the real estate sector. According to a report by valuation and consulting firm, RBSA Advisors the country’s real estate sector is expected to grow by 15% from $ 60 billion in 2010 to $1,000 billion by 2030, and contribute 13% of India’s GDP by 2025. The organised retail real estate sector is expected to increase by 28% to 82 million square feet by 2023. Ansh Batra, Director, Buniyad Group, said that the momentum that had picked up post-pandemic seems only to be getting stronger. "Despite the slight increase in the prices and a marginal hike in home loan interest rates the real estate sector has been thriving on positive buyers’ sentiments,” Batra said. In Delhi-NCR, there is huge demand for housing spanning across all segments, the report said. Sanjay Sharma, director, SKA Group said that among the factors that have boosted real estate in NCR is the all-round improvement in connectivity both road and metro. "The construction of Jewar Airport has acted as a major catalyst. These have enabled the developers to announce new projects farther away from the city and for the buyers it has significantly cut down their commuting time." Besides, since these are newly launched projects, they offer benefits of superior construction and better much improved facilities,” he said. The sentiments are equally positive in the commercial segment. Big retail companies are expanding and looking for new spaces. New projects are getting launched. Projects which were stalled due to the pandemic are nearer to completion. The commercial realty segment, both office and retail is thriving. Shop-cum-Offices demand has also taken a big boost, the report said, adding that prices of commercial properties are showing good appreciation. "In fact, it has been estimated that on average commercial properties comprising both offices and retail spaces can post returns anywhere between six to nine percent,” Ajendra Singh, VP, Sales & Marketing, Spectrum Metro, said. According to a Knight Frank report, 25 million square feet have been leased between January and June this year, translating to a 107 per cent jump, year-on-year. Bengaluru and NCR have led the way, accounting for 7.7 million square feet and 4.1 million square feet of these transactions, respectively. An interesting aspect of the post-pandemic realty scene has been the surge in luxury apartments, plots, villas and independent floors. For the Indian retail market, the projections are equally positive and is estimated to reach $1.1-1.3 trillion by 2025, the report said. In 2019-20 it was valued at $0.7 trillion, which makes for a Compounded Annual Growth Rate (CAGR) of 9-11%. Factors like socio-demographic and boost in economic activities such as urbanisation, income growth and rise in nuclear families are driving the Indian retail market. The organised retail real estate sector is expected to increase by 28% to 82 million square feet by 2023. "At present an investment in retail make for the best choice as the rental value and price appreciation are high,” Amit Jain, Director, Mahagun Group, said. Source: Zee Business INDIA

Shorter route to Chandigarh airport: GMADA moves ahead with process to acquire land

8/25/2022 1:03:00 PM

Aiming to ready the shorter route to the Chandigarh International Airport via Sector 66-A by March next year, the Greater Mohali Area Development Authority (GMADA) has moved ahead with the process for land acquisition. The authority has issued a notification under Section 19 of the Land Acquisition Act, declaring its intention to acquire 18 acres in villages Kambala, Kambali and Rurka for the project and inviting objections within 30 days, before compensation is fixed. The around 5-km stretch will allow commuters from Chandigarh and Mohali to head to the airport via the road in front of Bawa White House, instead of taking the longer route via Airport Road. This will bring down the 18km distance from Tribune Chowk, Chandigarh, to the airport in Mohali by more than 5 km. At present, commuters have to head all the way to the T-junction near the Indian School of Business, after passing by Bawa White House, to turn left towards Airport Chowk, where they again have to turn left towards the airport. “The 164-foot-wide road is part of the Mohali Master Plan. We have issued a notice under Section 19 of the Land Acquisition Act and are hopeful that land will be acquired by December this year and project will be completed by March next year,” said a senior GMADA official, dealing with the project. “A shorter route from Chandigarh has been a long-pending demand. It will be a boon for commuters from Chandigarh and neighbouring areas, and industry close to the Airport road by providing faster access,” said Naveen Manglani, former president, Chamber of Chandigarh Industries. Source: Hindustan Times INDIA

PM Modi to inaugurate cancer hospital at Mullanpur in Mohali on Wednesday

8/24/2022 1:27:00 PM

Prime Minister Narendra Modi will dedicate the Homi Bhabha Cancer Hospital & Research Centre to the nation at Mullanpur, New Chandigarh, in Punjab. The hospital has been built by the Union Government at a cost of over Rs 660 crore. The cancer hospital is a tertiary care hospital of 300-bed capacity and is equipped with modern facilities to treat all types of cancers using every available treatment modalities like surgery, radiotherapy and medical oncology - chemotherapy, immunotherapy and bone marrow transplant. This project is significant since there have been numerous reports of increasing cancer prevalence in parts of Punjab and people are forced to go to other states for affordable cancer treatment. This issue was so rampant that a train from Bathinda carrying cancer patients to Bikaner was known as a cancer train. The hospital in New Chandigarh will act as a hub of cancer care. A 100-bedded cancer hospital by GoI is functional since 2018 in Sangrur, which will now act as a spoke of this hospital. It will also help patients from neighbouring states Cancer treatment made affordable Treatment of cancer under the Ayushman Bharat has been one of the prime focus areas to safeguard the beneficiaries from catastrophic expenditure of cancer treatment. Health insurance cover of Rs 5 lakh per family per year is provided for secondary or tertiary care hospitalisation. Chemotherapy and Radiotherapy packages, along with surgical oncology are covered as part of cancer treatment in the empanelled hospitals under the scheme. A total of 435 procedures have been defined for the treatment of cancer. Significant focus on oncology in its various aspects has been ensured in the new AIIMS that are being established under the aegis of Pradhan Mantri Swasthya Suraksha Yojana (PMSSY). Cancer care facilities are also being established in other medical colleges under PMSSY. The National Pharmaceutical Pricing Authority (NPPA), under the Ministry of Chemicals & Fertilisers, put out a list of 390 anti-cancer non-scheduled medicines with MRP reduction up to 87% in 2019. The functional Ayushman Bharat Health & Wellness Centres (AB-HWCs) have done more than 10.33 crore screenings for oral cancer, more than 3.41 crore screenings for cervical cancer in women and more than 5.06 crore screenings for breast cancer in women. (As on April, 2022). Source: The Tribune INDIA

Current and Future Sentiment In Residential Real Estate Remain Optimistic: Report

8/12/2022 3:52:00 PM

The sentiment in the residential real estate sector has slightly moderated compared to the previous quarter’s all-time high of 68. It has now dipped to 62 in Q2 2022, amid a rapidly changing economic scenario, the recent report of the Knight Frank-NAREDCO Real Estate Sentiment Index Q2 2022 (April - June 2022) has said. “The Current Sentiment Index score, while safely remaining in the positive zone, has dropped mainly due to the perceived impact of the two consecutive repo rate hikes in May and June 2022,” the report said. The report noted that the Future Sentiment Score, which captures the stakeholder sentiments for the next six months for the real estate sector, has shrunk from its historic high of 75 in H1 2022, to 62 in Q2 2022, as pressures of a rise in inflation and depreciating rupee against the dollar has cast a shadow on the sector. That said, both the current and future sentiment scores remain optimistic, despite the decline, the report said, adding that the impact of global economic headwinds on the Indian economy is yet to play out. “The real estate supply-side stakeholders remain watchful of the tripartite global risks - economic turmoil in the United States, Russia – Ukraine standoff, and economic slowdown in Europe,” the report reads. Shishir Baijal, chairman and managing director, Knight Frank India, said: “Over the last 8-10 quarters, it has been firmly established that there is a strong latent demand in the residential sector, which when supported by right prices and sops, will convert to sales. In the last few quarters, this has given the once beleaguered sector a strong comeback. While some headwinds face the residential market with the geo-political issues, high inflation leading to increased repo rate and higher prices, demand remains strong leading to a positive outlook for the sector.” The Knight Frank-NAREDCO Real Estate Sentiment Index report further highlighted that the residential market outlook in Q2 2022 reflects future caution, as stakeholders expect strong sales and launch momentum, but maintain a subdued outlook on pricing. “At a time when housing affordability has been adversely impacted, the majority of stakeholders opine that there may not be further room for a home price rise,” said the report. Rajan Bandelkar, president, NAREDCO and director of Raunak Group, said: “The Indian real estate sector is one of the few bright spots in the global economy. The sector has been performing well and has been stable for the past few quarters. While the overall economic scenario and world order still remain cautious, strong fundamentals of the Indian economy and the real estate sector continue to give strength to various stakeholders, including the developers, the development authorities, policymakers, and the end consumers. With the government’s focus on reforms to tighten the monetary policy and the economy, we can look forward to an even stronger real estate sector in the future. Source: outlook India INDIA

Mohali | Land acquisition complete for Airport Road-Kharar linkway

8/9/2022 11:06:00 AM

Moving ahead with the plan to construct a 6km long, 200-ft wide link road between Airport Road and Kharar-Landran road, the Greater Mohali Area Development Authority (GMADA) has completed the land acquisition process for the project. The road construction is expected to begin in October this year. As many as 73 acres have been acquired, for which a compensation of ₹198 crore is being paid by the Punjab government. The highest compensation of ₹4.23 crore per acre is being paid to landowners in Baliali village, which is the nearest to the Airport Road. At ₹2.80 crore per acre, the lowest compensation amount has gone to Tole Majra village, which is the near Landran-Kharar National Highway. Apart from this, the state government will also be paying ₹167 crore for trees and structures being razed on the stretch. The department of housing and urban development has approved the compensation amount. Will improve connectivity for Kharar residents The link road, which was proposed six years ago, will improve connectivity from Airport Road to Kharar. With major townships such as TDI, Ansal, Jubilee City Gardens and Gateway City adjoining the stretch, the road will divide Sectors 116 and 92, and Sectors 117 and 74A to pass through Chappar Chiri Khurd, Chappar Chiri Kalan, Chajju Majra, Baliali and Ballomajra before connecting to the Kharar-Landran road near Swaraj factory. The road is a part of the Mohali master plan. Jubilee Group director Sanyam Dudeja said, “The road will be directly connected with DPS School, Jubilee City Gardens, and other important areas nearby, and thus prove a boon for residents here. Most importantly, it will help ease out traffic flow.” GMADA chief engineer Balwinder Singh said, “We will float tenders for construction now as the land acquisition process is complete and work is expected to begin in October.” Source: Hindustan Times INDIA

Panchkula urban to have land pooling policy

8/5/2022 9:45:00 AM

PANCHKULA: After getting approval of land pooling policy from the Haryana government decks have been cleared to develop Panchkula on its basis. A farmer will get 1,000 square yard residential and 200 square yard commercial plots in exchange of his land given for development of urban areas, according to the policy. The local administration has been keen to develop urban areas in Pinjore and Kalka with housing and commercial projects. Source: ET Realty INDIA

India's Real Estate Market Transparency Among Most-Improved Globally: JLL

8/2/2022 11:25:00 AM

ndia’s real estate market transparency is among the top-10 most-improved markets globally, according to JLL’s 2022 Global Real Estate Transparency Index (GRETI). India’s improvement in transparency score from 2.82 to 2.73 between 2020 and 2022 is higher than some of the highly transparent markets such as Canada, Belgium and Spain. The improvement in India is on the back of digitisation and data availability for transaction processes in addition to overall market fundamentals, JLL said in a statement. It added, “India’s improvement in transparency is reinforced by increased institutional investment and the growing numbers of real estate investment trusts (REITs) helping to broaden market data and bring more professionalization to the sector to complement regulatory initiatives like the Model Tenancy Act, and digitisation of land registries and market data, such as through the Dharani and Maha RERA platforms." Radha Dhir, CEO and country head (India) at JLL, said the move towards greater transparency in India will intensify investor interest and bolster occupier confidence, and as a result, the country will see more capital deployment as it demonstrates consistent efforts to make accurate data available, enforce legal protections for property ownership, and enhance the regulatory environment to facilitate the transactions. Advertisement RELATED NEWS Rupee Rises 12 Paise to 78.94 Against US Dollar in Early Trade on Rising Foreign Inflows Petrol, Diesel Price Today Announced: Check Fuel Rates In Delhi, Mumbai, Other Cities “Regulatory changes in the Indian real estate sectors like RERA and digitization in all transaction processes have led to a more sanitized and transparent data availability helping the country make tremendous progress in the index," Dhir added. She also said sustainability continues to be the key focus for the world going ahead and India has taken great strides in sustainability in the past years. However, there is a need for a more concerted and congruent thought process and action plan to bring sustainability into the mainstream. Sustainability Needs Sustained Thinking JLL said that to be able to move to the coveted Transparent list, from the present Semi-Transparent list, the country needs to improve sustainability tracking. Sustainability has not been one of the major areas for change over the last couple of years for India, but investors and occupiers are driving this change. “Several initiatives are underway at either the national or local level including the National Guidelines on Responsible Business Conduct from 2021, with reporting for the largest 1,000 companies by market cap to be compulsory from 2022-23, and local plans such as Mumbai’s Climate Action Plan, released in 2022, which is expected to establish a system to conduct regular energy performance benchmarking of buildings by 2025, and mandate a building energy management system in all new buildings," it added. Making green certifications/ratings and adherence to ECBC a mandate would give a greater push to sustainability. The regulatory impetus for mandatory tracking and reporting is still lacking but should get a major push following India’s call for Net Zero by 2070. Sustainability has been the biggest driver of transparency improvements across markets according to JLL’s 2022 index. With increasing numbers of countries and cities setting mandatory energy efficiency and emissions standards for buildings and the more widespread adoption of green and healthy building certifications. However, sustainability measures remain among the least transparent globally, and the fractured regulatory landscape – with different standards being set at the municipal, state, region, and country levels, and a proliferating array of sustainability credentials, benchmarks, and standards – is making it increasingly difficult for investors and companies to navigate and understand their responsibilities. Improvement in Transaction Process This was the parameter on which India’s score improvement was the highest in GRETI 2022. Given the regulatory initiatives, and better and deeper data availability, access to asset information has improved to a great extent. With reforms also creating the push for better professional standards for property agents and an environment for weeding out illicit finance through stringent anti-money laundering regulations, the transaction process in India has become more transparent and meaningful. India’s improvement in this parameter was just behind Vietnam and Malaysia, among other APAC countries. Samantak Das, chief economist and head (research), REIS, India, at JLL, said: “India’s investment performance parameter has held steady with a conducive investment environment in place and healthy opportunities for investors. The last two years have also been marked by upheaval and a reset in investor strategies. Some countries have found increased favour from investors and have moved up the rankings. India has kept its ranking steady, though it has improved its composite score in this parameter." JLL’s GRETI is an index that offers an understanding of the transparency spectrum across real estate parameters, which is most useful for real estate investors globally. It offers countries a window of opportunity to identify lagging indicators and make a concerted push to improve global investment flows. Interest in Alternative Real Estate Assets Diversification remains a core theme for many investors in the Asia-Pacific. Institutional capital, such as that controlled by asset managers, pension funds and sovereign wealth funds, is active in alternative real estate sectors in nearly two-thirds of the markets tracked. That means expectations for transparency across niche property types like lab space, data centers, or student housing have grown. India has made rapid strides in the availability of high-frequency data across its big cities and core asset classes through the intervention of tech platforms and regulatory reforms. It needs to replicate for other cities and alternative sectors with the work already underway through a mix of both private sector participation and government push towards digitization of land and property records. As market transparency improves through access to data, better corporate governance practices, and more publicly listed REITs creating more publicly available datasets, the sustainability agenda needs a greater push for India to rapidly ascend to the Transparent tier. Looking Ahead JLL said transparency and sustainability are now colliding to create new, insightful, and game-changing trends for the real estate industry. Standardized sustainability measurement metrics will make it easier to benchmark assets globally. “Making such data reporting mandatory will be key to the built environment decarbonization and climate risk mitigation across countries. The increasing diffusion of technology is creating the push toward tracking and aggregating granular and high-frequency data. While this works best in countries with digitized data sources and governance, advanced infrastructure, and deeper capital markets, the converse of transparency improvement by the proliferation of such data aggregators who build market data from scattered sources also holds true," it added. The road from regulations to putting them into practice – across financial regulations, land-use planning, taxation, anti-money laundering and eminent domain – will be necessary to increase transparency levels and match heightened expectations, JLL said. Source: News 18.com INDIA

Institutional investors bullish on commercial real estate

7/28/2022 12:05:00 PM

India’s commercial real estate market is segmented across Offices, Retail, Industrial and Logistics, and Hospitality. According to a media research report, the commercial real estate market in India is expected to grow at a CAGR of approximately 13% during the forecast period FY 2022-2027. The short-term impact due to Covid pandemic-led remote work trend is waning with the reopening of campus, back to office, higher retail footfalls, economic activities resumed, pent-up demand for travel explorations etc. Demand for grade A asset has sharply increased post Covid in the commercial realty markets with hygiene and social distancing taking the centre stage. It is estimated that by FY 22, the absorption of Grade-A office space will exceed 700 million sq. ft in major metro cities. The demand from various sectors like Manufacturing, SMEs, Electronics, Auto ancillaries, E-commerce, 3PL, and Retail is bolstered on the back of Atmanirbhar Bharat mission. Revolutionary schemes like Make in India and policy reforms like GST, RERA, and IBC launched by the Government of India have augured well for strengthening the commercial real estate sector in India. It continues to attract the highest Foreign Direct Investments on the grounds of transparency, tax incentives, and competence of the sector. The large-scale investment by institutional investors is projected to fuel the accelerated growth of commercial realty. The positive economic growth rally fostered by robust infrastructure development will boost demand for commercial real estate. Developers are optimistic about a healthy rebound in office leasing activity with the rise in investors’ confidence due to swift economic resiliency. Increased transaction volumes signify strong consumer demand and higher occupancy levels. The modified office design concepts to befit new models like flex workspaces, co-living, student housing, and built-to-suit will be the future growth levers. Commercial real estate continues to offer better rental yields on the ground’s rapid urbanization and better job prospects. It is high in demand due to its recurrent earning potential with a high ROI of 6 to 10% yield on investment and capital returns. This is a highly location-centric sector driven by potential demographics and socioeconomic factors. Periodic global economic discords recently have nudged investors to assess the risk variance of investment assets in portfolio return analysis. The idea of a capital market approach toward real estate investment is picking up amongst portfolio management experts. The technique is to determine the time value of money, valuation of cash flows, and risk hedged against return forecast. The performance of newly-launched investment instruments REITs and InviTs is yet to be benchmarked. With a strong presence of commercial realty market in India, REITs stand to gain significantly as viable investment options. The share of REITs in overall market capitalization is substantial globally, where Indian REITs are yet to catch up. The Indian commercial real estate market is highly competitive. It is becoming a preferred destination for global institutional investors, driven by robust office space absorption, declining vacancy levels, and rising rentals. The sector is also witnessing a market consolidation trend post Covid as the need for capital funding increases multifold. However, despite all the ambiguity around the future of offices in the wake of the pandemic, office assets continue to hold strong investment prospects, as evidenced by the quantum of investment committed towards the sector in FY 2022. The commercial real estate market has matured along with the evolved corporate finance landscape in India. Source: Financial Express INDIA

Airport Ltd approves shorter route from Chandigarh; Punjab mum

7/26/2022 1:59:00 PM

The Chandigarh International Airport Limited (CHIAL) today gave its consent to a shorter route proposed by the UT Administration from Chandigarh to the airport. Following a meeting of officials from the UT, Punjab, Haryana, CHIAL and the Indian Air Force today, UT Adviser Dharam Pal stated: “CHIAL has agreed to the two options on the table for a shorter route. Punjab didn’t comment on the issue. Now, we will submit the two options on the IAF portal for approval. Following which, one route will be finalised.” The UT Administration had earlier asked all stakeholders to submit their comments regarding the two proposals for an alternative route for approaching the airport. The administration is in favour of developing a shorter route starting near Sector 48. The new road is planned to start from the T-point intersection of Vikas Marg (coming from Sector- 43 ISBT) and Purv Marg (coming from Tribune Chowk). Further, the administration has put forth two options — one comprises constructing an underpass, while the second suggests a road parallel to the airport boundary wall. The administration wants the underpass option as it is straighter and shorter. As of now, city residents have to travel 11 km to reach the airport. One of the proposed routes to the airport will reduce the distance to around 2.85 km, while the second one will be 3.32 km long. To start near Sec 48; cut distance by 8 km UT wants a shorter route starting near Sector 48 i.e. from the T-point intersection of Vikas Marg and Purv Marg It has put forth two options — constructing an underpass or a road parallel to airport boundary wall The admn wants the underpass option as it is straighter and shorter. Source: Tribune INDIA

Karnataka, Manipur, Chandigarh top NITI ranking for innovation, growth

7/22/2022 12:24:00 PM

Karnataka, Manipur and Chandigarh topped a NITI Aayog ranking of states and union territories on innovation in economic growth, promoting business and competitiveness, and other parameters. Karnataka topped the India Innovation Index 2021 in the major states category, Manipur came first among North East and Hill states, and Chandigarh led among Union Territories (UT), said NITI Aayog on Thursday. The index evaluated the performance of 28 states and 8 UT on seven broad parameters and 66 indicators. The seven parameters are classified as five “enabler” and two “performance” pillars. Five enablers--covering innovation within a state/union territory--include human capital, investment, knowledge workers, business environment, and safety and legal environment. Telangana and Haryana came second and third in the major states category. Chhattisgarh was last in the category. In North East and Hill states category, Uttarakhand and Meghalaya came in second and third. Delhi and Andaman and Nicobar Islands were second and third in the UT and city-states category. “I want to encourage all states to ensure that these innovations are also accessible to all and help in resolving societal challenges. Only when we all grow together, we can become a prosperous nation,” said V K Saraswat, a member of NITI Aayog. The index had new indicators this year, taking the total to 66. The last edition had 36 indicators. NITI Aayog said it has tried to match its indicators to the 80 in the global innovation index. NITI Aayog said that states have scored fairly high on some enablers but low on the two performing pillars. Achievement in 'enabler' pillars has not necessarily led to a similar accomplishment in indicators under the 'performance' pillar. It added that high human capital in some states has not translated into filing of patents by individuals, which is one of the indicators of 'performance' pillar. The report cited the example of Maharashtra where high enrolment in PhD has not been entirely reflected in the patents filed in that region.] The index rated India’s overall performance on the 66 indicators, noting that the performance as a whole is “low but we are ambitious to enter into the top 25 nations on the Global Innovation Index.” From the 60th position in 2017 in the global innovation index, India has reached 46th spot in 2021. India was ranked 1st among the Central and South Asian nations and 2nd among the lower-middle-income countries, the report said. Source: Business Standard INDIA

PE investment in Indian real estate touch Rs 56 billion in Q2 2022: Savills India

7/19/2022 11:45:00 AM

Private equity investment inflows into the Indian real estate sector stood at Rs 56 billion (USD 704 million), according to the latest data by Savills India, a global property consulting firm. The current macro-economic situation influenced in part by the global tensions, commodity constraints, resultant inflationary pressures and monetary tightening are yet to impact the real estate investment markets. Due to the declining supply of structured credit into residential real estate, the mainstay of PE transactions has been leased office purchase which are high in volume and make the trend lumpier in certain quarters as is also evinced in the 32% quarter-on-quarter decline. "The uptake in office leasing and steady performance of REITs further underpins the strength of this sector. We will also witness more global investor participation in the housing sector which will fill up the void created post the October 2018 crises.” said Diwakar Rana, managing director, Capital Markets, Savills India. As per the data, much like the previous quarter, commercial office assets continued to claim the lion’s share, of the PE investment during Q2 2022. All the quarterly investment came from foreign institutional investors and was concentrated in core office assets across Mumbai, Chennai and the NCR. Source: ET Realty INDIA

Reduced change of land use rates to continue in Panchkula

7/15/2022 11:43:00 AM

Anticipating the accelerated development of Panchkula district and to create an environment for new investments from the real estate sector, the Haryana government had in 2020 reduced the rates till March 11, 2022. Aiming to boost Panchkula’s economic development, the Haryana cabinet on Monday approved the extension of reduced fees and charges for grant of licence and change of land use (CLU) permissions in Panchkula district to bring them on par with the charges in Mohali in Punjab till further orders. A government spokesperson said chief minister Manohar Lal Khattar had earlier issued directions to the departments concerned to expedite the projects relating to development of Panchkula. Therefore, anticipating the accelerated development of Panchkula district and to create an environment for new investments from the real estate sector, the government had in 2020 reduced the rates till March 11, 2022, which has now been extended. Source: Hindustan Times INDIA

PE investment inflows into the Indian real estate stands at $704 million in Q2 2022

7/12/2022 1:48:00 PM

Private equity investment inflows into the Indian real estate sector stood at USD 704 million (INR 56 billion), according to the latest data by Savills India, a global property consulting firm. The current macro-economic situation influenced in part by the global tensions, commodity constraints, resultant inflationary pressures and monetary tightening are yet to impact the real estate investment markets. Due to the declining supply of structured credit into residential real estate, the mainstay of PE transactions has been leased office purchase which are high in volume and make the trend lumpier in certain quarters as is also evinced in the 32% QoQ decline. “Private equity investment inflows into the Indian real estate sector have been strong in the yield asset classes like office, warehousing and data centres. Life sciences is another sector which will emerge as a consolidated asset class in the coming years. The uptake in office leasing and steady performance of REITs further underpins the strength of this sector. We will also witness more global investor participation in the housing sector which will fill up the void created post the October 2018 crises,” said Diwakar Rana, Managing Director, Capital Markets, Savills India. As per the data, commercial office assets continued to claim the lion’s share, of the PE investment during Q2 2022. All the quarterly investment came from foreign institutional investors and was concentrated in core office assets across Mumbai, Chennai and the NCR. Additionally, India’s life sciences sector holds huge potential for attracting PE funds in the current decade. This is owing to the availability of a large talent pool at significantly competitive cost making India a compelling destination for global research & development (R&D) and manufacturing. Betting big on this trend, global investment firm called Actis has invested USD 200 million (USD 16 billion) in Rx Propellant which is involved in development and marketing of life sciences real estate projects across Hyderabad and Bengaluru. "Similar to Q1 2022, commercial office assets remain the front runner garnering a major share of the investment pie. PE investment in the life sciences research and development real estate has picked up momentum since 2021 and we expect this sector to continue to grow aided by government policies, competitive costs, and growing talent pool among other factors,” said Arvind Nandan, Managing Director, Research and Consulting, Savills India. Source: The Economic Times INDIA

GMADA reconsidering cancelled Sector-77 site for new bus stand in Mohali

7/8/2022 1:30:00 PM

Over six months after the Greater Mohali Area Development Authority (GMADA) cancelled the 14-acre site in Sector 77 for a new bus stand, it is now reconsidering it after failing to identify any other suitable land. On January 2, GMADA had cancelled the site after finding it unviable for a bus stand, just two days after former Punjab local bodies minister Brahm Mohindra laid the project’s foundation stone on December 31, 2021. Now, GMADA chief administrator Amandeep Bansal said, “We have yet to finalise any other site, so we are reconsidering the one in Sector 77. A proposal will be sent to the higher authorities for a final decision.” When cancelling the site in January, GMADA had stated that a bus stand in Sector 77 will cause traffic gridlocks near the Airport Road. On the other hand, during the foundation stone-laying ceremony of the bus stand, Brahm Mohindra had said due to its proximity to Airport Road, passengers will find it more convenient to travel to the Sector-43 Inter-State Bus Terminus (ISBT) in Chandigarh and to other cities from there. In November last year, the then Punjab chief minister, Charanjit Singh Channi, had directed GMADA to finalise a new site for the ISBT near Gurdwara Singh Shaheedan in Sohana, where around 14 acres of land is lying vacant. Notably, Mohali already has the region’s first air-conditioned ISBT along the Chandigarh-Kharar highway in Phase 6. But 12 years after its inception, the bus terminal, which also houses a commercial complex, has become only partially operational due to corporate insolvency resolution process. The demand for a new bus stand within the city was made by former Congress MLA Balbir Singh Sidhu, following which the CM had directed GMADA to finalise the site. Source: Hindustan Times INDIA

Soon, 2 over-bridges to cut travel time between Kalka, Zirakpur

7/7/2022 11:09:00 AM

NHAI has already floated tenders for the 60-m wide over-bridges, which will be constructed at a cost of ₹50 crore. It has invited bids for the “construction and site improvement of the four-lane national highway (NH-22) on the Zirakpur-Parwanoo junction. The National Highway Authority of India (NHAI) has approved two over-bridges, which are likely to reduce travel time between Kalka and Zirakpur and alleviate traffic jams on the stretch by next year. NHAI has already floated tenders for the 60-m wide over-bridges, which will be constructed at a cost of ₹50 crore. It has invited bids for the “construction and site improvement of the four-lane national highway (NH-22) on the Zirakpur-Parwanoo junction.” Panchkula MLA Gian Chand Gupta said, “The two over-bridges (exit and entry lanes) will connect Sectors 20 and 21 with Sectors 2 and 4. The structures will be built on the Kalka- Zirakpur national highway.” A 12-month timeline has been stipulated for completing the construction work, and the company that gets the tender will look after the maintenance of the over-bridges for 10 years. Underpass on Zirakpur-Kalka Expressway in pipeline An underpass on the Zirakpur-Kalka Expressway is also in the pipeline. The project, which was approved by NHAI in 2021, will help solve the traffic woes in Sector 20 and 21. “At present, all commuters have to cross the Sector 20-21 light-point to reach Zirakpur. However, once the underpass comes up between Sector 12A and the Industrial Area, residents will not have to take this congested route,” Gupta said, adding that the underpass will also provide a direct link to the highway for those travelling to Delhi and Patiala. The underpass, which will be built by the Haryana Shehri Vikas Pradhikaran (HSVP) at the cost of ₹25 crore, will reduce traffic congestion at the Sector 20 light point by around 40%. “It will take a year to complete construction work. Trees are being felled for the project,” Gupta said. The underpass was a long pending demand of those residing in Sectors 20, 21, and 12 as they have trouble crossing the highway. Traffic snarls are routinely witnessed on the stretch in peak hours, from 8am to 11am and around 5pm. Source: Hindustan Times INDIA

India’s real estate market transparency among most improved globally: JLL

7/6/2022 2:08:00 PM

India’s real estate market transparency is amongst the top ten most improved markets globally, according to JLL’s 2022 Global Real Estate Transparency Index (GRETI) released today. India’s improvement in its composite transparency score between 2020 and 2022 (from 2.82 to 2.73) is higher than some of the top ten transparent markets such as the UK, Australia, Canada, Ireland, Sweden, New Zealand, Belgium and Japan. According to JLL, India’s improvement in transparency is reinforced by increased institutional investment and the growing numbers of real estate investment trusts (REITs) helping to broaden market data and bring more professionalization to the sector to complement regulatory initiatives like the Model Tenancy Act, and digitization of land registries and market data, such as through the Dharani and Maha RERA platforms. “The move towards greater transparency in India will intensify investor interest and bolster occupier confidence. As a result, we will see more capital deployment into the country as it demonstrates consistent efforts to make accurate data available, enforce legal protections for property ownership, and enhance the regulatory environment to facilitate the transactions. Regulatory changes in the Indian real estate sectors like RERA and digitization in all transaction processes have led to a more sanitized and transparent data availability, helping the country make tremendous progress in the index,” said Radha Dhir, CEO and Country Head, India, JLL. “Sustainability continues to be the key focus for the world going ahead. We have seen India take great strides in sustainability in the past years, however, there is a need for a more concerted and congruent thought process and action plan to bring sustainability into the main,” she added. Sustainability needs sustained thinking To be able to move to the coveted Transparent list, from the present Semi-Transparent list, the country needs to improve sustainability tracking. Sustainability has not been one of the major areas for change over the last couple of years for India, but investors and occupiers are driving this change. Several initiatives are underway at either the national or local level including the National Guidelines on Responsible Business Conduct from 2021, with reporting for the largest 1,000 companies by market cap to be compulsory from 2022-23, and local plans such as Mumbai’s Climate Action Plan, released in 2022, which is expected to establish a system to conduct regular energy performance benchmarking of buildings by 2025, and mandate a building energy management system in all new buildings. Making green certifications/ratings and adherence to ECBC a mandate would give a greater push to sustainability. The regulatory impetus for mandatory tracking and reporting is still lacking but should get a major push following India’s call for Net Zero by 2070. Sustainability has been the biggest driver of transparency improvements across markets, according to JLL’s 2022 index. However, sustainability measures remain among the least transparent globally, and the fractured regulatory landscape – with different standards being set at the municipal, state, region, and country levels, and a proliferating array of sustainability credentials, benchmarks, and standards – is making it increasingly difficult for investors and companies to navigate and understand their responsibilities. Interest in alternative real estate assets Diversification remains a core theme for many investors in the Asia Pacific. Institutional capital, such as that controlled by asset managers, pension funds, and sovereign wealth funds, is active in alternative real estate sectors in nearly two-thirds of the markets tracked. That means expectations for transparency across niche property types like lab space, data centers, or student housing have grown. India has made rapid strides in the availability of high-frequency data across its big cities and core asset classes through the intervention of tech platforms and regulatory reforms. It needs to replicate for other cities and alternative sectors with the work already underway through a mix of both private sector participation and government push towards digitization of land and property records. As market transparency improves through access to data, better corporate governance practices, and more publicly listed REITs creating more publicly available datasets, the sustainability agenda needs a greater push for India to rapidly ascend to the Transparent tier. Looking ahead Transparency and sustainability are now colliding to create new, insightful, and game-changing trends for the real estate industry. Standardized sustainability measurement metrics will make it easier to benchmark assets globally. Making such data reporting mandatory will be key to the built environment decarbonization and climate risk mitigation across countries. Source: Financial Express INDIA

Delhi government mulls hiking stamp duty by 1%

7/1/2022 2:55:00 PM

After discontinuing the 20 per cent rebate on circle rates on property transactions, the Delhi government is now mulling a 1 per cent hike in stamp duty on property, deeds, bonds, shares etc. A proposal regarding this has been moved by the revenue department, official sources said, adding that if approved, real estate transactions in Delhi will get costlier. Currently, the stamp duty for men is 3% and for women, it is 2%. If the stamp duty increases, men purchasing property, shares, bonds, deeds etc will have to pay 4% stamp duty, while women will have to pay 3% stamp duty. Official sources said that a hike in stamp duty will increase government revenues by Rs 700-800 crore. The government on Thursday discontinued the 20 per cent rebate on circle rates on property transactions, which were first announced last year to revive the economy and help people amid the Covid-19 pandemic. Officials said that the decision was taken after the economy showed signs of revival. Now, people will have to pay old prices while transferring property. Properties in Delhi are divided in different categories, from A-H, with posh areas like Jor Bagh, Vasant Vihar, Safdarjung Enclave etc falling under category A, and least-developed or under-developed areas under category H. Source: The Indian Express INDIA

Punjab Budget: CCTV cameras to be installed in Mohali

6/29/2022 2:26:00 PM

The Punjab Government has approved the installation of CCTV cameras at Mohali and Punjab Police Mahila Mitra Kendra at a cost of Rs 5 crore in the Budget announced today. The government has also earmarked Rs 10 crore for the construction of a jail during the current financial year. AAP MLA Kulwant Singh thanked Punjab Chief Minister Bhagwant Mann and Finance Minister Harpal Singh Cheema for accepting demands he had proposed for the development of Mohali. Among the demands raised by the MLA were setting up the Punjab Institute of Liver and Biliary Sciences at Mohali and a Fintech City. Jal Bhawan will be constructed at Mohali at a cost of Rs 10 crore during the current financial year to strengthen water supply. The MLA said all these demands were made after consulting people of the area. Source: The Tribune INDIA

Punjab budget 2022-23: Mohali to get another medical institute

6/28/2022 11:58:00 AM

In a major health-infrastructure boost for Mohali, the AAP-led Punjab government in its maiden budget on Monday announced another super-specialty medical institute for the district. Finance minister Harpal Singh Cheema, while presenting the Punjab budget, also said the Punjab government aimed to make Mohali a hub of industry and information technology (IT). As announced, the Punjab government will set up the state-of-the-art “Punjab Institute of Liver and Biliary Sciences” at Mohali. The super-specialty hospital will be a dedicated centre of excellence for the diagnosis and management of liver and biliary diseases, and to provide advanced training and research in the field of hepato-biliary sciences. This will be the second government medical institute in Mohali after Dr BR Ambedkar State Institute of Medical Science in Phase 6. Affiliated with Baba Farid University of Health Sciences, Faridkot, the medical college was set up during the previous Congress government’s regime in the building of the existing Mohali civil hospital. The first MBBS batch with 100 seats started in May this year, but the AAP-led Punjab government is now working to relocate the medical college. To make the district an IT hub, the government proposed to set up a financial technology (Fintech) City near Mohali, where all facilities will be provided to encourage private participation in areas like financial technology, block-chain technology and artificial intelligence. Besides, to develop Punjab as an industrial hub, the government will be acquiring around 490 acres in Mohali to set up industries. The budget also focused on increasing security and safety of common people. To step up the surveillance, the government will install CCTV cameras across the district at a cost of ₹5 crore. The government has also identified 17.5 acres at Kurara village to construct a modern District Jail in Mohali. For this, initial funds of ₹10 crore will be proposed in the 2022-23 budget. For providing welfare services to the Scheduled Caste people, the government will set up Dr BR Ambdekar Bhawan at Mohali, which will house all offices under one roof. An old-age home will also be set up in the district for ex-servicemen. Apart from this, the government plans to set up a Jal Bhawan at a cost of ₹10 crore to strengthen the repair and maintenance of infrastructure of water supply schemes. Source: Hindustan Times INDIA

Delhi government likely to extend rebate on circle rate by six months

6/23/2022 3:18:00 PM

NEW DELHI: The Delhi government is likely to extend the rebate of 20 per cent on circle rate of land and immovable property for another six months to boost the real estate sector in the city, officials said on Wednesday. The rebate scheme was launched in February 2021 to revive the economy and help people hit by the impact of the COVID-19-induced lockdown. It was extended till June 30 by the government in December last year. "We have been asked by the revenue minister to analyse all the factors and impact of the scheme and advise if it can be extended further," said a senior revenue department officer. He said that according to available information, the scheme has helped spur the number of land and movable property transactions and collect higher revenues despite the reduced circle rate. According to revenue department officials, properties in Delhi are divided into eight categories from 'A' to 'H'. While posh areas fall under the 'A' category, the least developed areas come under the 'H' category. Under the government's rebate scheme, the existing circle rate of land in 'A' category areas has gone down from Rs 7.74 lakh per square metre to Rs 6.19 lakh, the officials said. In 'H' category areas, the circle rate was reduced from Rs 23,280 to Rs 18,624 per square metre, they said. Source: ET Realty INDIA

Punjab mulls new Industrial Policy; single-window system to improve Ease of Business

6/22/2022 4:04:00 PM

Chief Minister Bhagwant Mann on Monday said that a single- window system would be launched in the state to get all approvals required for setting up industries with ease. While holding a meeting with the corporates in Dhuri, Mann promised that the new industrial policy will be formulated after consultation and the government will work to create an affable atmosphere for businesses to flourish. “Most of the industrialists have shifted their units to neighbouring states amidst higher taxes and complex system to get approvals to run the business,” he said. The process to establish a single-window portal, allowing industrialists to get a No-Objection Certificate or other clearances online has been set in motion. “Top Indian companies and MNCs are keen to set up projects in the state”, he added. The state government is working to restore the old glory of industrial city of Mandi Gobindgarh and the other industrial towns such as Rajpura, Phillaur and Dhariwal. The Sangrur district would be developed as a medical hub. Source: https://knnindia.co.in/ INDIA

Uttar Pradesh govt waives stamp duty if property transferred within family

6/17/2022 11:30:00 AM

The Uttar Pradesh government has decided to do away with stamp registration duty in instances where property is being transferred to family members. A 7% stamp duty is being levied on such transactions currently. The registry will now be done for Rs 5,000 with an additional processing fee of Rs 1,000. The proposal states that if property is being transferred to parents, spouse, children, daughter in-law, son in-law, siblings and grandchildren, then a stamp registration duty of only Rs 6,000 has to be paid against 7% of the cost of the property. “Earlier, as the owner of a property, if I wanted to transfer it to my child or another close relative, I could only either transfer it or sell it. In case of transfer before my death, even as there was no exchange of money and the same people continued to reside in the house, a high rate of stamp duty was being charged which prohibited people from dividing property or settling ownership before one’s death. This new rule resolves that issue,” Minister for stamps and registration Ravindra Jaiswal told TOI. Because of the high cost of registration, families often use power of attorney to transfer properties, which was leading to a huge financial loss for the government, a senior government official told TOI. He explained, for transferring a property worth Rs 50 lakh, stamp registration would cost about Rs 4.20 lakh. The power of attorney, on the other hand, costs only about Rs 100. To avoid the cost of registry, families were resorting to cheaper power of attorney. Now, when registration is available at such a low cost, people would prefer to settle property issues properly rather than rely on power of attorney. This move would actually bring in revenue for the government, he added. Source: The Economic Times INDIA

Jaipur, Chandigarh to come closer: Here’s why it’s good news for delhi

6/14/2022 1:51:00 PM

From this week, the travel time between Jaipur and Chandigarh will reduce by at least three hours and travelling from southern parts of Haryana such as Mahendragarh, Jind and Narnaul to the state capital Chandigarh will take barely two-three hours as the NHAI is set to open a 227km new-alignment and greenfield link on this corridor. The new six-lane access-controlled highway will also reduce the burden of thousands of heavy and polluting vehicles on the arterial roads of Delhi and NCR, which otherwise pass through this region for inter-state travel. The new highway stretch also shows how the traffic coming from Jaipur side to Chandigarh and beyond can use it as a bypass for the entire NCR. Currently, vehicles need to either pass through Delhi or take the Western Peripheral Expressway to bypass the national capital. Similarly, , the traffic coming from Chandigarh side towards Jaipur and Mumbai can use this stretch for faster travel without entering the NCR. Officials said the 340km Trans-Haryana highway was planned to decongest the National Highways linking Delhi, which are getting clogged, and also to accelerate economic activities in relatively backward areas of Haryana. TOI travelled on the greenfield highway stretch on Sunday. “This greenfield link, which is a part of the Ambala-Kotputli Economic Corridor, has reduced the distance between Jaipur a and Chandigarh by 50km. The Trans-Haryana Highway project from Panchkula to Kotputli will open up economic activities across the backward districts of south Haryana. Currently, you see all developments only along the Delhi- Chandigarh and and Delhi-Jaipur stretches,” said a senior central government official. The economic corridor comprises four road projects. While the first stretch of 39km of existing NH from Ambala to Ismailabad has been upgraded, the NHAI has built the 227 km greenfield link between Ismailabad and Narnaul Bypass. The last leg of 44km of the existing NH between Narnaul Bypass and Paniyala Mod near Kotputli has been upgraded. Officials said all the works have been completed without time overrun and the stretch has got the best facilities for commuters. The NHAI has bid out six wayside amenities for commuters and these complexes on both sides of the NH will have restaurants, fuel stations, vehicle charging points and immediate trauma care facilities. “We have used anti-glare in the median of the road to in the median of the road to prevent high-beam light impacting vehicles coming from other directions. For every 30km, we have a crane, ambulance and patrolling vehicle. The video incident detection system is already operational to deal with any emergency,” said an official involved in the project. Source: Times of India INDIA

RBI hikes limit for real estate loans by co-op banks

6/10/2022 1:33:00 PM

The Reserve Bank of India on Wednesday doubled the amount of loans that urban cooperative banks (UCBs) can issue for housing. The revision is done in order to factor in the rise in house prices. The central bank has permitted cooperative banks to extend doorstep banking services to their customers. “This will enable UCBs to meet the needs of their customers, especially senior citizens and differently abled,” the RBI said. The central bank has permitted cooperative banks to extend doorstep banking services to their customers. “This will enable UCBs to meet the needs of their customers, especially senior citizens and differently abled,” the RBI said. “The big announcement was raising the limit of loans for the State Co-operative Banks and District Central Co-operative Banks to the housing sector. The housing sector is a capital- intensive business, these measures will address the growing need for affordable housing, providing easy and higher limits with enough funding avenues for the projects,” Nitin Bavisi, CFO, Ajmera Realty said. “It will improve credit flow to the sector and also act as a boost for housing projects in the rural areas, thereby ensuring the recovery in all pockets of the country,” he added. Source: Financial Express INDIA

Punjab CM Bhagwant Mann approves Aerotropolis township in Mohali

6/8/2022 11:08:00 AM

Punjab chief minister (CM) Bhagwant Mann on Monday gave a go-ahead for setting up an ultra-modern township “Aerotropolis”, the seventh independent township in the Mohali master plan. A decision to this effect was taken in a meeting of the housing and urban development department, chaired by the CM here. The 1,653-acre township is an extension of GMADA’s Aerocity and will comprise both residential and commercial spaces. Situated in the vicinity of Chandigarh International Airport, it will come up on both sides of the Zirakpur-Banur road. There are around 8,500 residential plots, ranging from 100 square yards to 2,000 square yards. GMADA will be developing four pockets, A, B, C, and D. According to the CM, the proposed township will provide affordable housing facilities to the people tricity. He asked the officers of urban development department and Greater Mohali Area Development Authority (GMADA) to give their proposal. He added that Mohali has the best road network, air and rail connectivity, so a proposed township in its vicinity has a huge potential of growth and progress. He also asked the officers to explore the feasibility of shifting the upcoming medical college in Mohali on a new stretch of land. A senior GMADA official, who is associated with the project, said, “We are launching the scheme in May this year at a cost of ₹33,000 per square yard,” he said. The official further said, “GMADA has already floated tenders for construction of outer roads and even the process of cutting the trees is on.” GMADA had started the process of land acquisition for Aerotropolis in May 2017. Of 1,653 acres, owners of 1,456 acres have applied for land pooling. Through the land pooling scheme, owners will be provided residential or commercial plots instead of monetary compensation in lieu of their land. Source: Hindustan Times INDIA

Chandigarh adviser seeks progress report on land pooling policy

6/2/2022 12:04:00 PM

UT adviser Dharam Pal has asked for a progress report on land pooling policy. The administration has already decided to come out with a draft scheme on the Policy. The draft is being prepared by Bengaluru-based Indian Institute of Human Settlement (IIHS). The administration has already planned to make Chandigarh Housing Board (CHB) as a nodal agency for the policy to utilise available vacant land in the city according to the Master Plan-2031. UT administrator Banwarilal Purohit had asked to utilise available vacant land in the city as per the Master Plan-2031, leading the UT to look to overcome the constraint of availability of land throughintroduction of a land pooling policy. The policy will help to utilise surplus land for development works planned as per the Master Plan. Most of the potential vacant land is locked in different pockets. Source: ET Realty INDIA

Rentals in major Indian cities go up by 10%–20%

6/1/2022 1:46:00 PM

Rentals in major Indian cities have gone up by 10%–20% as companies have started pushing hybrid work arrangements and schools have opened up in most urban centers, say industry experts. Since January, the rental housing market in big cities has started to get back on its feet. This is because companies are starting to use hybrid work arrangements and schools are opening in big cities. "The residential rental market has, however, shown a steady increase in demand over the last two quarters as work from home culture is returning to near normal. The real estate industry witnessed a sharp rise in sales and is now showing amazing signs of recovery in the rental segment too," said Samir Arora, president, National Association of Realtors India. Residential property rentals in major cities such as Bengaluru, Chennai, Delhi-NCR, and Mumbai dropped 10-20% immediately after the pandemic began. However, as employees return to their jobs, the situation is beginning to change. "“UHNIs are actively looking to buy a new home in 2022 due to an increase in their wealth. We are seeing an increase in enquiries and are witnessing increased transactions for good luxury properties,” said Bhavesh Kothari, founder of Property First, a luxury property consulting firm. The residential rental market started to pick up momentum as early as the first quarter of 2022, thanks to a drop in new COVID-19 infections and aggressive immunisation across the country. This will be supported by most companies' plans to open offices from January and scale them up by June. According to the real estate head of IT/ITes firms, roughly half of the workforce is projected to return to workplaces for up to three days a week by the middle of this year, with employees and employers equally interested in returning to the workplace in a hybrid setting. "The industry was badly hit by the pandemic, but there is a huge opportunity for the organised players. Our new bookings have reached the pre-pandemic level, with an average occupancy level of around 60%," said Nikhil Sikri, CEO of the firm (name of the firm pls). The residential market is driven by the salaried population, and a large percentage of tenants in cities like Bengaluru, Hyderabad, Pune and Mumbai belong to sectors such as banking, financial services, insurance, software, and pharmaceuticals. "People looking at investing in residential properties have gone up, with rentals going up, and the market is seeing some stability returning for now. Searches for rental accommodation across the country have gone up acrossthe country from a year earlier," said Ramita Arora, MD (Bengaluru) Cushman and Wakefield. The pandemic outbreak almost brought the real estate rental market to a standstill for some months last year and earlier this year. The residential market has witnessed a sharp recovery in sales momentum and the trend has continued even in Q4FY22 with a good amount of pent-up demand generated over the past 2 years, which is now unlocking. The first quarter of the new year (January–March 2022) has seen quarterly sales attain a four-year high of 78,627 residential units despite the third wave, with all the top markets seeing a rise in the average capital values of residential properties as demand continued to strengthen, mentioned Knight Frank. Source: The Economic Times INDIA

Homebuyers welcome Maharashtra govt’s decision to extend PMAY scheme

5/31/2022 10:50:00 AM

Homebuyers have welcomed the Maharashtra government’s decision to extend its flagship affordable housing scheme known as the Pradhan Mantri Awas Yojana (PMAY Urban). The Central government had last month informed Maharashtra about PMAY-Urban being extended till September 2022, said officials from the Maharashtra Housing and Area Development Authority (MHADA), the nodal agency of executing PMAY in Maharashtra. They hinted that the scheme may be extended until 2024. Relief for buyers Twenty eight-year-old professional Maitrayee Iyer from Mumbai says she plans to own a house in the Mumbai Metropolitan Region (MMR) and plans to avail the benefit under the Credit Linked Subsidy Scheme (CLSS). "I plan to buy a house in Navi Mumbai or somewhere in Kalyan or Dombivali belt for which I plan to avail the CLSS benefit,” said Iyer. Another buyer, 27-year-old Soyal Rawat from Nagpur in Maharashtra said, "I plan to buy a house in the next one year as I have been planning for it since the last few months now. It is good that the PMAY scheme has been extended considering there are decent options for buying homes nearby Nagpur under the PMAY scheme. I plan to avail of a home loan under CLSS." PMAY (Urban) extended until September 2022 in Maharashtra Shivkumar Ade, Chief Engineer of MHADA, confirmed to Moneycontrol that the the PMAY Urban scheme in Maharashtra has been extended until September 2022. According to officials from MHADA, the Central government has granted a preliminary extension until September 2022. "There are chances that the scheme might be extended until 2024, and the Central government might write to us in the coming days.'' Maharashtra government had set a target of constructing 19.40 lakh houses under the PMAY scheme by 2022. According to data provided by MHADA, under the PMAY scheme, up to December, 2021 in all 1,161 projects consisting of 13 lakh dwelling units have been approved of which construction work of 4.86 lakh dwelling units are completed and that of 2.12 lakh dwelling units is in progress. The Maharashtra government's housing department has issued a notification to fast track the approvals of the PMAY projects. "Though the extension time given is less, we need to work towards approving the projects keeping the uniformity and smooth process in mind," the notification said. The notification said an additional force of nine engineers will be stationed at MHADA that will approve the projects from the existing team of around six engineers. As per the current procedure, MHADA is the nodal agency and all the urban local bodies including the municipal corporations and councils after approving proposals of PMAY housing projects, send it to MHADA's PMAY cell, which in turn sends it to the state government's committee for approval. Meanwhile, real estate developers in Mumbai welcomed the extension of PMAY scheme but were of the opinion that high land costs in Mumbai are a challenge. Harshul Savla, managing partner, Suvidha Lifespaces (M Realty), whose company is constructing a compact 1 BHK apartment for ₹1 crore in the eastern suburb Mulund said, "This is a welcome move. However, for a city like Mumbai where the cost of land is high constructing homes under the PMAY scheme is a challenge." "I feel the government should work towards ensuring that metropolitan cities also end up having such schemes of affordable housing being implemented on ground. Currently, I feel PMAY houses are coming up in cities or locations where the land price is relatively low, and there is no demand. This could lead to unsold inventory piling up,” he said. A large PMAY (U) project is coming up in the city limits of Mumbai. It comprises 4,000 apartments. This is being constructed by the MHADA in Goregaon area of western suburb in Mumbai. Private developers have not come up with projects under PMAY (U) owing to high cost of land in the city. The Housing for All by 2022 initiative was launched by the Modi government within five months of assuming office. It’s all about ensuring a home for every Indian by 2022. To boost affordable housing and achieve the vision of Housing for all by 2022, the government (Central and State) have undertaken several initiatives, such as Pradhan Mantri Awas Yojana (PMAY) that aims to build one crore homes in urban and rural India by 2022. With the construction of as many as 20 lakh houses yet to begin, the government is expected to extend the scheme until March 2024. Earlier, 2022 was the deadline for completing construction of houses under this scheme. The Centre has so far sanctioned 1.21 crore houses under the scheme. The Credit Linked Subsidy Scheme for the Middle Income Group (CLSS for MIG) was announced by Prime Minister Narendra Modi on December 31, 2016. It was initially launched for 12 months until December 2017 and covered MIG beneficiaries seeking housing loans for acquisition/ construction of houses (including re-purchase) from banks, housing finance companies and other notified institutions. For the MIG I category, which consists of individuals with an annual income of Rs 6-12 lakh, an interest subsidy of 4 percent is provided on a loan of up to Rs 9 lakh. For the MIG II category, which is made up of individuals with an annual income of Rs 12-18 lakh, an interest subsidy of 3 percent is given on a loan of up to Rs 12 lakh. The benefits are typically in the Rs 2-2.5 lakh range. The carpet area of a housing unit was initially revised to up to 120 sq m and up to 150 sq m for MIG I and MIG II respectively in November, 2017 and further enhanced to up to 160 sq m and up to 200 sq m for MIG I and MIG II, respectively in June, 2018. Source: Money Control INDIA

Punjab CM calls for direct flights from Mohali airport to US, Canada

5/27/2022 11:14:00 AM

Punjab Chief Minister Bhagwant Mann on Monday directed the state civil aviation department to immediately tie up with the Centre for direct flights to countries like the US and Canada from the international airport here. At present, only two international flights are operational from the airport to Dubai and Sharjah. Chairing a meeting to review the functioning of the civil aviation department, Mann said a large number of people from the state are settled in countries like the US, Canada, UK, New Zealand and Australia. This initiative will facilitate the Punjabi diaspora settled abroad to visit their native places in the state in a seamless manner, he said. To give an impetus to the agro and food processing industry in the state, Mann also asked the department to immediately start cargo flights from the international airport, according to an official release. The chief minister said this step will go a long way in giving much-needed boost to the export of food products across the globe and especially in supplementing income of state farmers manifold through this farmer-friendly initiative. Mann also asked the department to immediately convene a meeting with the Haryana civil aviation department for evolving a broad consensus on naming the international airport here as Shaheed-e-Azam Sardar Bhagat Singh International Airport. The CM also underscored the need to set up an international civil enclave at Halwara to be operational at the earliest so that the trade and industrial activities in the vicinity of Ludhiana could get a major boost. Stressing the need to streamline the functioning of the Punjab State Civil Aviation Council (PSCAC), Mann also asked the secretary, civil aviation, to work out modalities for giving preference to the state youth in imparting flying training. This council will be instrumental in providing flying training to the local youth as per international standards, said Mann. Earlier, they had to get flying training from other parts of the country and even abroad by spending huge money but now they would be provided with this facility at affordable rates within their own state, he said. He also asked the department to intensify its efforts for the upgrade of the system for facilitating the flying operations in low visibility conditions, especially during dense fog in winter. Source: Business Standard INDIA

Zirakpur-Panchkula Bypass project back on track

5/26/2022 12:46:00 PM

Hanging fire for nearly nine years, the Zirakpur-Panchkula Bypass project, aimed at decongesting Zirakpur by providing an alternative route to the traffic moving between Ambala and Shimla, is back on track as the National Highways Authority of India (NHAI) has begun the land acquisition process. Also pegged as a ring road, the 200-foot, six-lane road will originate from McDonald’s on the Ambala-Zirakpur highway, pass through Peer Muchalla, Sanoli, Gazipur, Nagla (all Mohali villages), before traversing along Sector 25, Panchkula, and culminating at the T-junction on Panchkula-Kalka highway near Sector 4. An estimated ₹800 crore will be spent on the 17-km project that is expected to be completed by March 2023. An NHAI official, privy to the development said, “NHAI has sent letters to the Greater Mohali Area Development Authority (GMADA) not to issue any Change of Land Use (CLU) for the land earmarked for the project and has also written to the Punjab revenue department to publish a notice under Section 3 of the Land Acquisition Act. A letter has also been sent to the district revenue officer not to conduct any registry in respect of the said land.” The official further said that the land acquisition process will be completed by October this year, following which the road was expected to be readied by March next year. Mohali district revenue officer Gurdev Singh Dham said, “After the NHAI letter, the officials concerned have been told not to register any land in the area, as NHAI has started the land acquisition process.” Work on the project had started in 2013, but came to a grinding halt in February 2014 after some landowners moved court seeking higher compensation. Then, NHAI had to wait for GMADA to transfer around 100 acres for the project. The land was eventually handed over in December 2020. Once the road is complete, the Shimla-bound traffic can take this road to bypass the bottleneck at Zirakpur and join the Shimla highway at the Panchkula end. Similarly, Ambala or Delhi-bound traffic from Shimla can also avoid Zirakpur. The road will also open an alternative route from Panchkula to the Chandigarh International Airport in Mohali, but it will be much longer than the existing route via Chandigarh. However, this stretch will give the option to avoid the Chandigarh and Mohali traffic. Chandigarh Master Plan 2031 also proposes this road to divert the around 1.5 lakh vehicles entering Chandigarh daily from Punjab and Haryana. According to the Master Plan committee, through this road, traffic between Mullanpur and Panchkula, and that from Kansal, Zirakpur and Panchkula not headed for Chandigarh can be diverted and significantly reduce traffic congestion on the arterial roads of Chandigarh — Madhya Marg and Dakshin Marg. Source: Hindustan Times INDIA