THE INDIAN ECONOMIC TAKEOFFnaredco.in/pdfs/NR-June-August-2019.pdfArora & Associates Infradevelopers...

THE INDIAN ECONOMIC

TAKEOFFON THE FOUNDATION

OF HOUSING

VOLUME 5 | ISSUE 1 | JUNE - AUGUST 2019

India Residential Property: A 2017 Recap and Peek into Future

10 Real Estate: Investing Tips for 2019

Rs. 150

National Realty 2019VOLUME 5, ISSUE 1, JUNE - AUGUST

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COVER STORY

8 THE INDIAN ECONOMIC TAKEOFF ON THE FOUNDATION OF HOUSING

PRESIDENT’S FOREWORD05 Dr. Niranjan Hiranandani On 21 September 2017, I took over as

the newly elected National President, NAREDCO.

CHAIRMAN’S ADDRESS06 Rajeev Talwar

VICE CHAIRMAN’SADDRESS07 Parveen Jain

17 Journey to the Moon

24 Rental Housing Road Map

47 Indian Real Estate Industry

50 Builders cannot pay EMIs on behalf of home buyers: NHB

30 10 Real Estate Investing Tips for 2019

11 India Residential Property: A 2017 Recap and Peek into Future

13 Status of RERA implementation in various states, 2 years on

15 Technology Transforming Indian Real Estate

STATE ISSUE18 NAREDCO NORTH (HARYANA)

28 NAREDCO (TELANGANA)

32 HOUSING FOR ALL - BY 2022: Challenges and Policies Requirements

4 National Realty June - August 2019 National Realty June - August 2019 5

Buzz

Blue print of road ahead for a unified India has been made by 1.3 billion voters of India in a landmark election that bid a bye to divisive forces making the last efforts to consign India, to balkanize India. The Divisive British Raj that was rung in at the stroke of midnight on 15th, August, 1947 came to a close after 72 years with the election of National Democratic Alliance on May, 23, 2019.

2.05 lakh houses worth 7400 crores stand approved for construction within financial year 2019 and no longer can we think of socio economic development in isolation from the environment.

It is not only the vulnerable section of society who will benefit under the biggest revolution since 19th century. The world will witness an economic takeoff into the 21st century that will spread across National, Religious, Social frontiers including those of caste and creed to provide dignity to 8 billion human kind through a Global Housing Investment Summit on September 28, 2019 at Gurugram.

The foundation of this revolution was laid at Housing Technology Challenge cum Expo held at Vigyan Bhavan New Delhi on 2nd and 3rd March, 2019 under the aegis of Government of India Ministry of Housing and Urban affairs under the dynamic leadership of Minister of State( Independent Charge) Housing and Urban Affairs, Shri Hardeep Singh Puri.

The seamless integration of Housing technologies across the Globe to provide quality Homes and built spaces Commercial, Institutional and Industrial Housing resulted in a globally accepted blueprint for a New World, coupled with the induction of High Technology in expanding network of commercial corridors across the length and breadth in India , making India the Global destination and Hub of Commerce.

Sustainable Development goals have played an important part in achieving the target of 67 lakh Toilets.

The greatest contributor to the implementation of Housing Technologies in integrated projects is through National Institute of Real Estate Management (NIRM) To create a pool of NAREDCO recognized professionals in all aspects of Real estate ranging from construction architecture, Design, Legal and marketing professionals, the introduction RERA at the Centre, State, Ski States, Towns and Rural habitats. The last but not the least skill development centers across the Nations and the world that are producing thousand’s of skilled workers to implement the Housing Revolutions.

Col. (Veteran) Prithvi Nath Editor-in-Chief

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EDITORIAL BOARD

Printer, Publisher & Editor-in-Chief Col. (Veteran) Prithvi Nath, VSM on behalf of NAREDCO

Deputy Editor Sumit Bhatia

Advertising & Circulation Yogesh Kumar & Asad MubinEmail [email protected]/ [email protected] No.: DELENG17455/29/1/2009-TCPublished from National Real Estate Development CouncilFirst Floor, 8 Community Center, East of Kailash, New Delhi110065 Tel: 011-26225795, 41608570, Fax: 26225796

Printer Naveen Printers, F-11/B, Okhla Phase- 1, New Delhi 110020

NAREDCO (North)Haryana officeNAREDCO Haryana 76G, 3rd Floor, Sector -18, Behind HIPA Building, Gurugram-122015, Haryana Tel: +9124-4055124

NAREDCO (South)Andhra Pradesh officeNAREDCO Andhra Pradesh Plot No. 723/A, Road No. 37, Near Srinidhi International School, Jubilee Hills, Hyderabad - 500033Tel: +9140-23541447Karnataka officeNAREDCO Karnataka, 2nd Floor, Old No. 1097 New No. 58, 18th B Main, 5th Block, Rajaji Nagar, Bengaluru – 560010, KarnatakaTelengana officeNAREDCO Telengana Plot No. 43-A, Journalist Colony, Road 76, Jubilee Hills, Hyderabad – 500033, Tel: +91 40-65572184

NAREDCO (Central)Jaipur officeNAREDCO Rajasthan 307, Pink Towers, Opp. Nehru Garden, Tonk Road, Jaipur- 302015, Tel: +91 141- 2741375, 510865

NAREDCO (West)Mumbai officeNAREDCO West Foundation, C/o Shah & Shah AssociatesC-Block, Wankhede Stadium, Near Sachin Tendulkar Stand, D-Road, Churchgate, Mumbai – 400020

NAREDCO (East)Odisha officeNAREDCO Odisha Plot No. 84, Satyabadi Enclave, Gayatri Vihar, Chadrasekharpur, Bhubaneshwar-751024 , Tel: +91 674- 2740103

EXECUTIVE COMMITTEE CHAIRMAN Shri Rajiv Talwar, CEO DLF Ltd.

VICE CHAIRMAN Shri Parveen Jain, CMD Tulip Infratech

PRESIDENT Shri Niranjan Hiranandani, CMD Hiranandani Group of Companies.

PRESIDENT ELECT Shri R Chalapathi Rao

VICE PRESIDENT NORTH Shri Anil Suri, CMD Suri Group & Shri. Gaurav Jain, CEO, Samyak Properties & Infrastructure

VICE PRESIDENT SOUTH Shri P Prem Kumar

VICE PRESIDENT CENTRAL Shri Ashok Patni

VICE PRESIDENT WEST Shri Rajan N Bandelkar, Director, Unnathi Estate (Raunak Group)

MEMBER FINANCE Shri Rajesh Arora, Managing Director, Arora & Associates Infradevelopers Pvt. Ltd.

APPOINTED MEMBER Brig. (Retd.) R. R. Singh, Director General, National Real Estate Development Council (NAREDCO)Exciting offer-SAVE Rs. 600/- on annual subscription (6 copies)

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PRESIDENT’SFOREWORD

Esteemed Readers,

Greetings from NAREDCO!

I delightfully express my views on the new government and says, “Our hearty congratulations to the new government Modi 2.0 and we look forward to the continuity of the progressive policies that were initiated in the past five years. We believe the new government works further for the structural reforms and steps that will boost real estate business and strengthen consumer sentiment towards Indian real estate. The strong and steady government should bring about stability with remedial actions without much delay to revive the shock of last quarter economic growth. The stable government reflects the faith reinforced by the aspirational India which enhances the confidence index domestic as well as globally.

The Indian Real Estate industry is hopeful that the government will redress and resolve the prolonged issue of liquidity crisis that the sector is facing currently. Moreover, rationalizing the taxes by subsuming stamp duty under GST will grand a big relief to the home buyers. We highly recommend the National Housing Policy to boost rental housing in order to fulfill the ambitious target of Housing for All by creating surpluses. Furthermore, under the decisive leadership of the Hon’ble prime minister, the nation will be able to unleash workforce opportunities in the sector that will help the nation to continue as the world’s fastest growing economy.”

Dr. Niranjan Hiranandani President

DR. NIRANJAN HIRANANDANIOn 21 September 2017, I took over as the newly elected National President, NAREDCO. For real estate, these are the most challenging of times - the best and the worst of times, the Government at all levels has launched a program in real estate reforms - RERA, GST and Bankruptcy, as also moves to kick start a Housing Revolution based on the Public Private Partnership (PPP) model.


CHAIRMAN’SADDRESS

HARERA Gurugram has become the model for the nation designed to regulate the business practices followed by all developers in the country it has made rapid progress in granting approvals before marketing of projects.

VICE CHAIRMAN’SADDRESS

The prime minister flagged off the Mughisar and Ballabhgarh metro sections with Haryana Chief Minister Manohar Lal Khattar in Sultanpuri village of Gururgram. I feel that with this new beginning, people of this area will be able to reach at other places in Delhi NCR faster

My Dear Reader

Greeting to one and All!

It is once again my privilege to be addressing you at a time when the nation is at crossroads before takeoff into a massive leap forward in 2019. Promulgation of Real Estate (Regulation & Development) Act, 2016 on May 01, 2016 has become the forerunner of a massive housing revolution, which initially lead by Maharashtra has now reached all parts of the country. HARERA Gurugram has become the model for the nation designed to regulate the business practices followed by all developers in the country it has made rapid progress in granting approvals before marketing of projects. The publication of HARERA Gurugram, 1st Edition by NAREDCO Haryana has introduced a compendium of all rules and regulation which are a reference document for all buyer and builder alike. This is surely going to be a step forward towards the establishment of transparent and ethical real estate resulting in winning the trust and confidence of all.

After years of neglect by UPA2 till coupled with Reserve Bank on India’s fair treatment to the Housing and Construction Sector, Banks have given additional risk weighted and even high rates with NBFCs given even higher. Housing sector is down from last ten years and face the financial burden. Many of good company is gone under and many are defaulter and next bubble will in NBFCs.

At this critical juncture the industry has united to present a way out of the financial deadlock. If government comes out with a policy that a builder will not charge GST from home buyer, who will pay it himself, it will be a win-win situation for the entire country, whereby, customers will return to the market in a transparent economy as the builder price will be inclusive of GST. As a matter of fact, whatever GST credit the builder gets, it will pass on to the customer as per the new dispensation of including GST in the sale price which will be a game changer that will give a boost to the sales especially in view of the ongoing financial pressure for funding home loans by NBFCs which will remain curtailed.

NAREDCO will continue to play its designated role as an umbrella organization under the aegis of Central and State governments to vitalize the economy which depends on the housing and construction sector.

Jai Hind !

Rajeev Talwar Chairman

Dear All,

Warm Greetings !

I am privileged to address the readers on the massive strides made by NAREDCO over the past three months in all the fields of the Real Estate sector – Infrastructure, Housing and Construction, Building Materials and allied industries.

Most importantly it is the Real Estate Regulation Act introduced on May 01,2016, based upon the foundation of trust and confidence of the buyers that has been implemented in the states of Maharashtra and Haryana, which has catalyzed economy of the country.

The rise of HRERA Gurugram under the Chairmanship of Dr. KK Khandelwal and the dynamic reform process set in motion by the Chief Minister, Shri Manohar Lal Khattar has energized the housing sector and boosted the market after a long period of stagnation.

The development of Delhi Mumbai Corridor has kick started the economic growth through Kundali-Manesar-Palwal (KMP) Expressway that is emerging as one of the most important Indian long distance expressways, that connects Kundli in Sonepat in the North East to Manesar in Gurugram and to Palwal in South West. I welcome the opening of KMP Expressway by the Hon’ble Prime Minister Shri Narendra Modi for the development of the nation. The opening of KMP Expressway will increase the development activities in the NCR and this will benefit the common people of this entire area.

The opening of KMP Expressway will decongest a major chunk of vehicular traffic in Delhi and Gurugram. It shall be the cynosure of all eyes and shall become the new Real Estate destination favoured by all for buying and investments and with a bright future for high returns.

At the same time, the Hon’ble Prime Minister flagged off the Mujesar and Ballabhgarh metro sections with the Haryana Chief Minister Manohar Lal Khattar in Sultanpuri village of Gurugram. I feel that with this new beginning, people of this area will be able to reach at other places in Delhi NCR faster.

The Hon’ble Prime Minister Shri Narendra Modi has also laid the foundation of Sri Vishwakarma Skill Development University in Palwal district. This is the first university of this kind in the country. This new university will help the youth in this field to acquire new skills and get better employment. This will increase the development of the entire region.

With Best Wishes & Regards,

Parveen Jain Vice-Chairman


NAREDCO Haryana Global Housing Summit Cum Mega Expo on the last weekend of June, 2019, is marked by the emergence of India as the

Third Largest economy of the world, with her GDP touching $10 trillion from $2.9 at present.

As we look at the years ahead, we would be $5 trillion by 2024 and $10 trillion by 2031. That’s when India will be counted amongst the first three largest Global Economies – US, China and India.

The indicators• The latest decision by RBI to reduce the

repo rate by 25 basis points was the first indicator that spelled a great victory for Indian home buyers. The redeeming aspect being the environment of Ethics and Trust in the Indian housing sector.

• The relaxation of GST rates and tax reliefs in the budget that ushered the much needed liquidity in the Indian market.

• Against the backdrop of stability in crude oil as also domestic currency, it indicated the impending US, China Trade thaw leading to large Housing investments and a phenomenal growth, the details of which would be seen in the Investment Session of Global Housing Summit Cum Expo.

COVER STORY

TEAM NR

We must look at the “Invisible” part of our payment balance with China and make a focused effort at attracting more Chinese tourists as also for the Housing Market opening up as Global Housing Destination – epically in globally city states like Gurugram, Bombay, Delhi, Bangalore, Hyderabad, Amaravati, and Kochi.

It is important to acknowledge that China has rediscovered Bollywood. The success of relatively recent offerings such as Dangal, Secret Superstar and Hindi medium indicates that Chinese audience will flock to movie which has a strong theme, an excellent script and good acting.

China, which is an important manufacturer of solar panels and other equipments, must join ISA (International Solar Alliance) at early date. This would be a win - win for both countries providing excellent example of how the two can work together in international Organizations.

The negotiations on REGIONAL Comprehensive Economic Partnership (RCEP) are now mainly between India and China. We must ensure RCEP has a strong commitment with respect to services and movement of professionals for emergence of India as the Global Hub.

SensexIn 40 years, the Sensex rose 390 timesRupee 1,00,000 investment in Sensex in ’79 would today on 8, April, 2019 be Rs 3.9cr. Thus Sensex touched 39,000 on its 40th Birthday with GST collection crossing Rs 1 Lakh cr mark

What does this mean?While the world economy is heading towards depression with minus growth, India rises to minimum 7.5% census growth, thus, indicating that the cantilever of global economic revival will be the catapulting Indian economic takeoff

Outlook for Home Ownership – A New PerspectiveNo longer will people keep money on hold as it will be an idle asset. There will be a research in the housing market with the middle class will take advantage of the subsidies scheme under PMAY (Prime Minister Aawaz Yogna), the time limit of which has been extended to march 2020.

The rising availability of marginal cost of fund based lending rates (MCLR) on the cut in repo rate will super the investment in housing sector culminating in greater launches in housing sector as also project completion.

Pradeep Aggarwal Treasure of NAREDCO and Founder Chairman of Signature Global is positive about the Real Estate sector as new home borrowers will take advantage of the subsidy scheme under PMAY (Prime Minister Aawaz Yogna), which will be a big boost for affordable housing that will not only encourage first time home buyers but also raise investment sentiment thereby lowering the EMI burdens.

Are you falling in a Debt trap?As the world changes, so must the home owners. The new age mantras for the vast number of property owners across the country are outlined in subsequent paragraphs.

Real Estate Assets:-1. Do not hold on to assets that are idle and no longer being occupied by you due to joint families reuniting to prosper. In such cases the idle asset can be sold for reinvestment in residential housing for expanding next generation. The Government has altered Norms for the acquisition of two second homes for the

property owners as these purchases will no longer attract taxes, subject to the following condition with effect from 1, April, 2019:-• If capital gains do not exceed Rs two crores,

then you can buy two homes by investing the gain (say of three crores) plus whatever is available in your own name to purchase the homes for Generation Next.

Indo US China FactorNew Economic Strateg yThe world is changing and so U S-India economic Strategy Versus China through PAX

INDO-AMERICANA backed by Japan, Australisia and Pacific.

The recent strategic defense and economic interaction between two most populist Nations - China and India – have enabling the two to begina strategic dialogue on each country’s hopes and fears, their assessments and calculations, their dreams and goals, to address the increasingly adverse balance of trade of Indian experiences with China.

It is essential now for India to work with Chinese government to ensure greater market access of India for Indian products.

ECONOMICTAKE OFF

The Indian Economic Takeoff on The Foundation of Housing

1980 1985 1990 1995 2000 2005 2015 2019

Annual return in percentage

SENSEX TOUCHES 39K ON 40TH BIRTHDAY

in 1979 would be worth `4cr today`1 lakh invested in sensex stocks

-52.4 (Worst year)

7.2

72.948.3

94.0(Best year)

Longest bull run (1988-1994)100

80

60

40

20

0

-20

-40

-60


A 2017 Recap and Peek into FutureINDIA RESIDENTIAL PROPERTY

ANUJ PURI, CHAIRMAN – ANAROCK

2017 was quite an eventful year for the Indian economy at large, and the real estate sector got more than its usual share of the limelight. A series of reforms and structural changes tore

into the very heart of the industry, effecting a surgical strike at market opacity, unaccounted funds transactions and customer victimization.

The entire real estate fraternity had to re-orient their businesses to sustain in the changing environment. Already, the real estate sector has shed a massive part of its unorga-nized and fragmented nature, and the ways and means of doing business in changed for good in 2017.

The incumbent Government maintained a laser focus on changing the fabric of the Indian economy, with direct implications on the real estate industry, by implementing highly impactful reforms:• Cracking down on black money transac-

tions with demonetization• Setting up RERA - a regulator to increase

financial discipline, improve transparency and empower property buyers

• Introducing GST to boost transparency in taxes and improve business efficiency

• Curbing anonymous property transactions and ownership by incisive amendments to the Benami Properties Act Simultaneously, the Government’s ambi-

tious ‘Housing for All by 2022’ mission also re-ceived a massive thrust in 2017 with the grant-ing of the very vital infrastructure status to affordable housing. In addition, the definition of affordable housing and houses classified under MIG underwent a series of tweaks to cover a larger buyer base and help developers offload their budget homes inventory.

Overall, 2017 saw the Government making it clear that home buyers will no longer be at the mercy of real estate developers, and putting various measures in place to ensure that housing supply syncs up with demand and pertinent projects are developed. There are doubtlessly some teething troubles – some of them very obvious - in implementing and exe-cuting the new policies and reforms. However, they have made a deep impact even now.

Reputed global agencies have recognized the Government’s efforts in 2017 - India featured in the Top 100 nations in terms of ease of doing business as per the World Bank, and Moody’s elevated India’s sovereign rating from the lowest investment grade of Baa3 to Baa2, also upgrading its outlook from ‘stable’ to ‘positive’.

India Residential: Supply-Demand DynamicsIn 2017, new housing project launches were severely impacted by the triple tsunami of demonetization, RERA and GST. As per ANAROCK research, only 94,000 units were added in top 7 cities of India between Q1-Q3 2017, which is a drop of more than 50% from the same period in 2016.

However, the last quarter of 2017 looks encouraging - in the first two months of this quarter, around 18,000 units were launched, which is around 90% of the new launches in Q3 2017. With restricted new launches and fence-sitters returning gradually to the market because of the comfort that the structural reforms and enhanced transparency provide them with), 160,000 units were sold during Q1-Q3 2017. The decline in sales was only to the tune of 30% compared to Q1-Q3 2016. Unit sales have exceeded new launches for the consecutive six quarters, and the trend continues in Q4 2017 as well.

India Residential: Price Trends2017 remained a buyer’s market through-out. The presence of a significant inventory of unsold units kept a tight control on aver-

age prices, which largely remained range bound between Q3 2016 and Q3 2017. Assessment of average prices for the past 5 years (Q3 2012 to Q3 2017) reveals that

Pune, Kolkata, Hyderabad and Bengaluru were the front-runners in capital value appreciation, bucking the trends of larger cities such as MMR and NCR.

Media hails Naredco Initiatives on Paradigm Shift in affordable housing for rental sector, employment generation, skill development supplementing Farmers

employment, Quantam leap in GDP for 5$ trillion economy and Roads Infrastructure combined with homes for all as the foundation of Economic Takeoff, scripting a Housing Revolution after Roti Kapda and Automobile. 15th National Convention - Housing for All 2022 “Real Estate Inflection Point: Readying for the future on Aug 19-20, 2019 at Hotel Taj Palace, New Delhi”

KEY THEMES OF THE SESSIONS

1. Housing for All 2022: Next steps for enabling affordable housing

2. Solutions to Liquidity Challenge Faced by Real Estate Sector in India

3. National Urban Rental Housing Policy: Ensuring Housing for All

4. RERA Empowered: Stakeholders Convergence for Expedited Gains

5. Ease of Doing Business: Enabling Growth through Interventions

6. Real Estate Integrated Infrastructure: Symbiotic Model for Development

7. Emerging Construction Technologies in Real Estate Project Delivery

8. Disruptions in Real Estate: The Game Changers

NAREDCOSPEAKS

Press Conference New Delhi on July 29, 2019

NAREDCOSPEAKS


Unsold inventory decreased by 22%, 18%, and 16% in Hyderabad, Chennai and Bengaluru respectively between Q3 2016 and Q3 2017. NCR and MMR, which account for around 55% of total unsold units across top 7 cities as of Q3 2017, witnessed a mere 6% decline in unsold units between Q3 2016 and Q3 2017.

In the post-RERA era, developers are focusing firmly on executing under-construction projects within the stipulated timelines; new launches are likely to be restricted, and unsold units will decline further in 2018.

India Residential: Unit Size TrendsWith changing buyer preferences and skyrocketing prices, developers have been compelled to construct compact homes. As per ANAROCK research, the average size of new units launched in 2017 has shrunk significantly over the previous year, across the top 7 cities of India. Notably, NCR witnessed the highest reduction of 21%, followed by 15% reduction in Pune, Kolkata and Hyderabad, and 12% in MMR.

Wrapping UpReal estate developers are unlikely to forget 2017, which was like a bad dream come true, and look forward to better business in 2018. For sure, home buyer confidence is reviving, and more fence-sitters will spring into action in 2018.• Overall, 2018 will be a year of market

recovery defined by restricted new launches, gradually improving sales and declining unsold units

• With a massive focus now on affordable housing, this segment will be the poster boy of 2018

• A notable phenomenon in 2018 will be a large-scale consolidation of developers and brokers, and distressed assets changing hands.

We may not see a scintillating residential market recovery in 2018, but it is certain that whatever recovery and growth we see from here onward will be sustainable and backed by stronger market fundamentals than ever before. The days of speculative peaks and troughs are safely behind us.

Q12016 Q22016 Q32016 Q42016 Q12017 Q22017 Q32017

Num

ber

of U

nits

1,20,000

1,00,000

80,000

60,000

40,000

20,000

0

New Launches Units Sold

Q3 2012 Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017

Price Trends (Indexed to Q3 2012)

NCR Kolkata MMR Pune Hyderabad Chennai Bengaluru

160%

150%

140%

130%

120%

110%

100%

90%

MMR NCR Bengaluru Pune Hyderabad Chennai Kolkata

2016 2017 % Change

2,500

2,000

1,500

1,000

500

0

0%

-5%

-10%

-15%

-20%

-25%

Unit S

ize (

Sqft

)

Average Unit Size - New Launches (2016 vs 2017)

-12%

-2%

-4%

-21%

-15% -15% -15%

Status of RERA implementation in various states, 2 years onHOUSING.COM

It has been two years since the Real Estate (Regulation and Development) Act (RERA) came into force across the country and the centre’s aim to enforce it in every state, is gathering visible

momentum. Even the north-eastern states (including Manipur, Meghalaya, Mizoram, Nagaland and Sikkim), which earlier shied away from it, have agreed to officially notify their RERA rules soon. West Bengal is the only state which has notified its own real estate law under the West Bengal Housing Industry Regulatory Authority ( WBHIRA). RERA is intended to cover developers, as well as real estate agents across the country. As it stands now, 22 states and six union territories have already notified their RERA rules, out of which 19 states have active online portals. West Bengal too has an active portal for its own real estate law.

If we look closely into each of the states with active portals, project and agent registrations have been on the rise since November 2018. While buyers have been continuously fretting about the dilution of the rules that have been notified, they are also bestowing their faith in the law and coming forward to raise their complaints against faulty developers, for myriad reasons including project delays. For instance, MahaRERA has received as many as 6,631 complaints (as on April 2019) since its inception, out of which the state authority claims to have disposed

After two years since its implementation, we look at the status of the Real Estate (Regulation and Development) Act across various states in India and examine that states that have taken the lead and those that have remained laggards

RERAIMPLEMENTATION

STATE/ UNION TERRITORY NOTIFICATION STATUS

Arunachal Pradesh Notified (Website yet to be launched)

Assam Notified (Website yet to be launched)

Kerala Notified (Website launched)

Manipur To be notified soon

Meghalaya To be notified soon

Mizoram To be notified soon

Nagaland To be notified soon

Sikkim To be notified soon

Tripura Notified (Website yet to be launched)

West Bengal Notified under HIRA

Lakshadweep Notified (Website yet to be launched)

Puducherry Notified (Website yet to be launched)


States and union territories with active RERA websites

STATE/ UNION TERRITORY REGISTERED PROJECTS, AS ON APRIL 2019

REGISTERED AGENTS

Andhra Pradesh 307 47

Bihar 250 –

Chhattisgarh 859 363

Goa 379 143

Gujarat 5,317 899

Haryana 558 –

Himachal Pradesh 29 26

Jharkhand 30 66

Karnataka 2,530 1,342

Madhya Pradesh 2,163 533

Maharashtra 20,718 19,699

Odisha 257 35

Punjab 672 1,026

Rajasthan 925 840

Tamil Nadu 965 538

Telangana 642 440

Uttar Pradesh 2,612 2,750

Uttarakhand 156 175

Andaman and Nicobar Island 1 16

Dadra and Nagar Haveli – Daman and Diu

96 2

Delhi (National Capital Territory of Delhi)

18 70

of more than 64% of the complaints. However, there are also cases where, despite RERA notifications to defaulting builders who have been summoned to pay penalty to buyers, they are delaying payments or not attending hearings.

Nevertheless, things are changing for the better. Generally, players are far more accountable and cannot easily get away with breaking the RERA rules. In several instances, developers have been reprimanded by the concerned authorities and have had to pay penalty amounts to their buyers. While the redressal of complaints is not satisfactory for many, consumers are coming forward in large numbers, to register complaints across states. The unruly days of Indian real estate are definitely over.

RERA registration numbers in states and union territoriesRegistration of project and real estate agents have been on the rise across most states, from November 2018 to April 2019. For example, in Andhra Pradesh, as many as 307 projects have presently been registered under the RERA, up from mere a 61 in November 2018. Maharashtra is currently the most active state, having the highest project registrations, with more than 20,718 projects under the MahaRERA and nearly 19,699 RERA-registered real estate agents. Maharashtra is followed by neighbouring Gujarat, with 5,317 RERA-registered projects and 899 registered agents and agencies. Project registration in Karnataka currently stands at 2,530 and the state has 1,342 RERA-registered real estate agents, so far.

Technology Transforming Indian Real Estate

A multitude of tech advancements and innovations have made inroads into the Indian Infrastructure and real estate sectors, which are likely to reshape the future of the industry. It would be interesting to check here what 2019 has in store for the infrastructure market of India.

TECHNOLOGYTRANSFORMING

One of the most potent and radical ground-breaking technologies set to transform property markets in current times is artificial intelligence

(AI), which along with machine learning are reforming technology all around the globe. Both are essential in determining most of the approaching novelties in every possible field. AI, in layman terms, makes machines execute compound tasks, related to human minds, in a smart method. Machine learning makes

computers (machine) scrutinize and solve problems by teaching it basic logic and making the machine intellectual enough to learn on its own, as it advances to solve diverse variations of the problem.

When it comes to assimilating AI, the Indian property industry is not far behind. From the way property seekers scout for property to offering probable buyers with applicable information to investigating property values – all the phases of property procurement are now powered by AI and

Artificial intelligence and machine learning in real estate investing lets private investors, builders and property managers to regulate costs, get a rise in returns, and cope with the risk of using mechanical systems

machine learning. In recent times, the Indian realty players

have countersigned the revolutionary effects of the cloud, VR (virtual reality), the Internet of Things, Machine Learning and AI. Currently, there have been indications that more realtors and real estate companies in India are positively resorting to their customers’ need for transformation, particularly within the domains of AI. In the Indian property sector, AI has the vast scope and ability to lessen operative expenses, augment and advance customer service, recover competence and condense resource depletion within the industry.

Artificial intelligence and machine learning in real estate investing lets private investors, builders and property managers to regulate costs, get a rise in returns, and cope with the risk of using mechanical systems

ADITYA KEDIA MD, TRANSCON DEVELOPERS

Technology Transforming

16 National Realty June - August 2019

Ways in which AI is modifying the real estate:

of risk valuation is well-organized, and podiums can pay emphasis on profitable investments while reducing non-profitable ones.

Deal Matching: Buyers can set their criteria of investment and be informed when a deal matches their benchmarks. For example, investors keen on investing only in a first lien position on commercial properties earning at least ten percent returns, can set those standards on their investor dashboard and acquire a list of properties that match those principles, which will also be exclusive of properties that do not fall within their preferred investment constraints.

Construction Automation: Tools are being developed that aid builders in obtaining quality materials at the best price from the finest suppliers in the market. By allowing the robots to handle the acquisition of materials, construction companies can cut down on expenditures and upturn profits by utilizing artificial intelligence as the chief technological driver.

Property Management: Artificial Intelligence can be applied in property

management to observe and envisage when the systems of critical maintenance are ready for replacement. The technology is also valuable to keep a tab on rental trends in particular geographical zones and increase tenant rents automatically when leases terminate. Other details of property management such as building automation and growth analysis can be achieved by property management companies to regulate probable returns on the basis of critical inputs that influence rents, expenditures and proceeds in rental housing.

Intelligent Search Platforms: Major search engines have started making use of AI to support users get much more information even from a very basic property search. Conventionally, investors, brokers, property buyers and sellers were often limited to a minority of search criteria such as the value and property location. Now, with the help of AI, searches have become more refined with numerous information layers being made accessible for detailed properties. Users are now able to obtain details specific to ROI, good neighbourhoods, and other apparently tiny property details, prior to buying.

Chatbots: One of the most understandable ways artificial intelligence is renovating the over-all real estate industry is through chatbots. A multitude of Indian realty companies from brokerages to real estate crowd funding podiums have started integrating chatbots into their websites. These digital marvels let companies save on costs pertaining to customer service and also facilitate in optimizing time intervals spent on responding to questions by allowing a computer-generated assistant to reply to common queries that don’t modify from customer to customer.

Investor Analytics: Property investors can set revenue and growth goals and have them checked by an intellectual robot, who can evaluate risks based on investor parameters and make all the necessary modifications to benefit the investor to meet their monetary goals more competently.

Forecasting Loan Defaults: Platforms pertaining to real estate crowdfunding can make use of artificial intelligence to forecast loan defaults, which upsurges investor profits. By envisaging defaults, the process

JOURNEY TO THE

MOON

At 2:43 PM on Monday, July 22, 2019 India began its journey to the moon at Sri Hari Kota in Andhra Pradesh which saw massive orange and black clouds reaching the

heavens with the 15 story tall chandrayan 2 beginning its journey for rendezvous with moon on its South Pole lit up by earth at night. September 06 or 08, 2019 will, thus be, written in golden letter in the annals of space research.

Chandrayan 2 will carryout 15 manoeuvres, what a journey from the age of bull-karts to moon, the global space race, however began during the cold war USSR and USA. The present race propels India into a global space leader along with USA, Russia and China. Actually, It all began with the Moon Impact Probe (MIP) that landed on the moon on Nov 14, 2008. It carried on board Chandrayan 1 and was dropped on the luminous surface near the Schakleton Cratar. Now, the Chandrayan 2 space craft carrier a lander inside with is rower after the soft landing of the lander on the south pole of moon on the night of September 06, it will deploy pragyan, the rover. It is named after Vikram Sara Bhai the founding father of space research, the historic event highlights the key role of the legendary Sara bhai who had declared that “We do not have the fantasy of competing with the Economically Advance national exploration of the moons or manned space flight.” Thus, Rs. 1,000 crore Chandrayan 2 project is the most economical in the international space research as it pays a tribute to Dr. A P J Abul Kalam then President of India and former ISRO Scientist who gave idea of a space craft in the lunar orbit to the moon. This thought gave birth to MIP which descended

on the moon in 2008 with President Kalam present in the control room to share the historic moon.

Chandrayan 2 will help the world to get a clear understanding of the evolution of the moon through photographical studies, comprehensive mineralogical analysis and a number of experiment on the lunar surface which will further the search for water molecules on the moon and new rock types with unique chemical compositions.

The journey of Chandrayan 2 co-insides with

the 50th anniversary of the historic Apollo 2 when man first landed on the moon, the Chandrayan 2 team has two women who fired the historic moon launch that has set India on the path of space research. The team has been lead by Muthayya Vanitha and Ritu kandhal while Vanitha is a electronic system engineer and trust with the heavy burden of handling the mission, data handing and systems for India’s remote sensing satellites. Ritu Kandhal is the director of Mission Chandrayan 2 and was the Deputy Directional Operation in Mars mission.

National Realty April - June 2019 17

OVER THEMOON

TEAM NR


NAREDCO HARYANA

IntroductionThe vision for the tour was realization of Mission Vasudhaiva Kutumbukam (Global family with no boundaries of nations, beliefs, casts and creed). The concept visualizes the spread of awareness regarding India being, the world in miniature, will assure a new age of ‘’Pax Indiana’’ were the policies of past will be replaced by technological leaf frog into the 21st century utilizing the virgin lands through the concept of Make in India.

At the city state level a concept defines Gurugram as the key to the National Capital Region, Marouli being the pillar of Delhi – Dilli ki Killi, this refers to Ashoka pillar Qutub Minar in Marouli which was the Capital city of India before the Mughal takeover.

China visit was aimed at seamlessly integrate the economies of Asian Giants for economic take off and on the foundation of Housing and infrastructure.

STATEISSUE

CHINA REPORT

An Economic Take off through Make in India

Scripted

Tour 17 – 23, May

The team was welcome by the people and Industry of China during Foshan, Gaungzhoun, Macao and Hongkong.• Industry Interaction was Hosted

by China by (Mr Zhou Zhen Yang, Chairman (The chamber of commerce of lecong furniture cities) and Gigi Secretary General

• World Vision – while Patron and DG emphasizing significance of technology transfer and cooperation between the two countries, China response by chairman and Vice chairman welcoming the Indian delegation.

• The Delegation Visited The site of the largest Chinese construction site of China Construction Third Bureau Group Company Ltd’’ (CCTBG) construction company in Foshan

• Welcomed by Wang Xiao Fei (Deputy General Manager) and George Ho (General Manager Aide).

• The total built-up area of the site including two basement was approx 56 lakh sq ft which was to be completed 24 months with Manpower of 300 workers.

HARERA – NAREDCO Study Team

1. Patron & DG, NAREDCO Haryana Mr. Prithvi Nath

2. Vice Chairman, NAREDCO & President, NAREDCO Haryana & CMD Tulip Infratech Pvt. Ltd., Mr. Parveen Jain

5. Chairman M3M - Mr. Roop Bansal

6. Chairman JMD - Group Mr. Sunil Bedi

7. Senior VP TCG, General Secretary NAREDCO, Mr. Sukhbir Sharma

9. Chairman Fab Homes - Mr. Salil Dhawan

10. Director M3M - Mr. Piyush Bansal

11. Member HARERA- Mr. Samir Kumar

12. Ms. Sumita – W/0 Mr. Samir Kumar

13. Member HARERA - Mr. S, C, Kush

14. DG NAREDCO Mr. Raghuraj Singh

15. Ms. Sandhya Singh – W/o Brig Raghuraj Singh

16. Director Business Promotion NAREDCO Haryana - Ms. Preeti Singh


Make in IndiaThe technology and expertise are being transferred in India for developing quality projects within stipulated period of two years through Town Planning reforms and public, private partnership.

Presentation1. The presentation given

by the English knowing aide, Gorge Ho, was very effective and impressive.

2. Interactions with NAREDO Team included details of major projects will lead to follow up in subsequent visits.

3. The Company is Keen to develop projects in tune with Pakistan corridor and are looking for comparable projects on the Delhi Mumbai industrial and commercial corridor.

Observations1. Facade, Plumbing work, electricals

and fitments were simultaneous with construction.

2. Size of Block Works were three times bigger than ours

3. Shuttering system was very efficient and slab cycle much much shorter (5 days) than ours

4. Hoist cranes, Passenger and martial elevators, and tower cranes were much more in number as also more efficient.

The Visit to Furniture City and the largest furniture mall resulted in –

1. M3M offer of procurement of furniture for their apartments in the upcoming projects provided the price is brought down to Rs 4-5 lakh

2. M3M’s procurements team to follow up

During Interactions in Lighting City, Lighting mall and electrical products mfg company, M3M negotiated procurement of the lightening 3 – 4 meter high poles for their upcoming projects

1. Negotiations are on to maximize quality of imports for replication in one of their forthcoming projects

2. Initial delivery of electrical poles to be in two containers (150 each), which will initiate the procurement process

3. Effective negotiations for the poles were brought down from Rs 28,000 to Rs 10,000 for each pole.

4. M3M’s procurements team to follow up

A Great Achievement

STATEISSUE


Make in IndiaThe establishment of model lighting projects will result in their production in Gurugram.

Visit Ceramics ‘Cerambath’ and tiles factory.Ceramic / CP fitting Mall

1. Team visited the various distributers of different variety of ceramics and CP fittings.

2. M3M offered to provide space to accommodate the samples as a mock up for promoting the procurement of quality products leading to their production through Make in India.

Delegation met Ministry of External Affairs Indian Consul General Mr. Sujit Ghosh at Guangzhou-510610 (China) where in the members appraised him of their mission to cement trade tiles between the two countries.

3. Delegation Visited Venetation Mall and were taken on Gondola ride at the lake created on the line of vinis in Italy.

An Economic Analysis of

Chinese leapforward scripted by Honorable

Mr. Samir Kumar Member HARERA

The delegation visited different places in China Viz :-

(i) Hongkong (ii) Foshan (Lourvre Mall, Shunde nearby markets, Lighting City and largest lighting mall) (iii) Guangzhou and (iv) Macau in order to adjudge the gigantic progress made /achieved by China during the last 40 years i.e. from (1980

The visit by the entire delegation sponsored by NAREDCO was an eye opener and more to be seen than believed. China has made discernible strides in all the fields of development & progress by way of providing/catering to the basic minimal necessities of the citizens of China.

1. China was considered to be a sleeping giant earlier to 1980. The progress on various fronts viz Infrastructure in the form of Roads, provisions of various day to day needs viz water supply, electricity, sanitation, Housing, Creation of Manufacturing Hubs, etc. were very poor and dismal. However during this transformation of 40 years a metamorphosis has occurred in China beyond all proportions of vision and magnitude generating mass employment opportunities, leading to manifold increase in their incomes and standards of living.

2. In view of the vision, hard work, road map delineated provided by the leadership of China. A marvellous transformation has occurred which was entirely visible in below noted fields :-

3. China has progressed and achieved remarkable achievements in the infrastructure i.e. Roads are entirely six laned, straight &short cut routesby public transport and ensuring freedom of movement, sans any traffic jams. excavating, tunnels in the mountains, building of over bridges on the sea etc. were to be seen with a sense of amazement which speaks volumes about the three ‘S’s’’ i.e. Speed, Skill and Smartness which in the final analysis leads to bringing efficiency in the.

4. The provision of Bullet trains in the Railways Sector ensures speedy, comfortable and hassel- free movement.

REMARKABLE ACHIEVEMENT IN THE HOUSING SECTOR:-

5. It was found that the Governmental agencies have built up enormous huge towers in the housing sector thus rehabilitating the massive population. The aim and object of the China Govt. Is to provide house to every citizen/family along with habitable facilities like electricity, light, water supply and sanitation etc. Progress made in the housing sector is really commendable.

6. The China Govt. has imposed a complete ban by way of imposing population control by the adhering to one child norm.

7. It was seen that there is lot of discipline in public life. There is a complete control over the media. People don’t waste time in useless gossip .There is complete ban on Dharnas and strikes. It was seen that people have business like attitude. Women force has been inducted in various sectors viz Hospitality,

health, education, shops etc. where they have useful and vital role to play.

8. There is emphasis on cleanliness and beautification of environment and surroundings.

9. Chinese have full control over mass production in the field of industry viz furniture markets, Chandeliers, Tiles/Ceramics, mosaic, electricity goods, Mobiles, Electronic goods and Toys which they export to foreign countries and earn huge foreign exchange and profits.

As a result of all their endeavours and hard work transformations, China has evolved itself as a global power.

It is further stated that recently the Government has been reinstated with thumping majority and under the dynamic stewardship of Hon’ble Prime Minister Shri Narender Modi Ji with his visionary efforts India too will progress and achieve the heights of progress by way of ensuring peace and plenty in the sub-continent by ensuring all the basic amenities to general public viz Housing, electricity, sanitation/cleanliness, water supply, roads and rail transport infrastructure, education, health and agriculture etc.

STATEISSUE


RENTAL HOUSINGROAD MAP

The archaic tenancy laws have made rental housing in India a difficult proposition, the field ignored for long. At a time when the talk of promoting

rental housing has picked up pace for over a decade now and the demand is huge in Indian market when buying a home is still a distant dream that people are trying to turn into reality. However, given the fact that property prices are high, at least in the metros and emerging towns and cities where the majority of population is living for employment, owning a house is far-fetched and thus people are on the lookout for a rental home. The difficult part is that many owners do not want to rent out their accommodation because of the archaic tenancy laws. The recent step by the Ministry of Housing and Urban affairs to come up with the Model Tenancy Act 2019 is a welcome step that will streamline and rationalize this segment. Most notably, the Finance Minister has promoted rental housing a government will take up several reform measures.

The realty fraternity believes that the new national rental housing policy will not just facilitate this emerging segment to all across the nation but also draw individual as well as corporate players with good influx of investments

Basically there are three formats of rental housing in India - single family rentals, paying guest accommodation and shared

apartments. The missing brouhaha around archaic laws may be mainly because the investors that are into rental housing are into it mainly because of the capital appreciation that a property can yield in few years and not because of the meager rentals that they are now getting. “India’s housing policies have so far largely focused on building more homes and on home ownership and little has been done to promote rental housing. This is a serious lacuna, since rental housing, by itself, can help narrow the Indian housing shortage to quite an extent. As a result, to fulfill its promise of ‘housing for all’, the Modi government is now taking a more holistic viewpoint which includes rental housing as a vital factor,” says Anuj Puri, Chairman, Anarock Property Consultants.

Rental housing concept is applicable globally in most of the developed countries. Indian government has set an ambitious target of housing for all by 2022 to provide a shelter to every citizen. To meet this mammoth target,

horizon and scope of this scheme should be expanded to embrace rental housing model. “In current day scenario, it’s easy to fetch commercial properties on lease versus residential. Therefore, new national rental housing policy will promote and regulate rental housing platform which will draw individual as well as corporate players into this emerging segment with good influx of investments pumped into the residential rental housing segment,” says Niranjan Hiranandani, National President, NAREDCO. “As per data, nearly 50 per cent of people live on rental housing throughout their life span in developed countries like the USA. India can also adapt and adopt similar housing practices to meet its gigantic need of providing roof to its vast population at the affordable price and any of the preferred locations,” adds Hiranandani.

Paradoxically, despite the acute housing shortage in the country, the vacancy levels of homes in India have been on the rise. According to the national census, vacant houses comprised around 12 per cent of the total share of the urban housing stock, amounting to nearly 11.1 million homes in 2011 —an increase of 71 per cent since 2001. “It was happening because still many landlords across the country are averse towards the idea of renting out their properties to non-MNCs. This leads to a situation where many properties even in the up market areas are left to decay even when they could have been utilized by renting out, which can save the property from decaying. Many NRIs and HNIs are buying residential properties but they do not rent out due to the fear that it would be difficult to get the tenant vacate the property. The time was right for the Model Tenancy Act 2019 and this would surely lead to improvement in rental market,” says Pankaj Jain, Managing Director, Realistic Realtors.

As per a data by Anarock Property Consultants, Mumbai had the highest number of vacant homes with nearly 4.8 lakh units, followed by NCR and Bengaluru with nearly 3 lakh homes each. AS we approach the 2021 Census period, these vacancy numbers are very likely to have increased tremendously across the country, “Many prevalent practices in various states

and cities have to be kept in mind in order to make the Act an effective tool. Practice of demanding multiple month advance rent is one such issue that is a reflection of landlords’ fear of their properties’ health and safety. Through the Act, the authorities have to instill confidence in landlords that dispute solving process will not be lengthy and complicated. The disputes that might occur in case of advance rent of fewer months include excessive damage to the property and long non-payment of rent,” states Ashish Bhutani, CEO, Bhutani Group.

The new draft Model Tenancy Act, 2019, aims to cap security deposits, penalize recalcitrant tenants, stop increase in rent without notice, no sub letting by a tenant without consent of landlord. “The basic policy is now there and after the finalization of the Act it will be up to the states to implement it. The real challenge lies there as the steps taken by the states will define the success of the Model Act. It is important to see that there should be no dilution or else the purpose will get defeated,” says Vaibhav Jain, CMD, Rise Group.

Hence, the Model Tenancy Act, 2019 may well become a process rather than an event, and need several course corrections to reduce regional dilutions before it becomes a force

to reckon with. Dhruv Agarwala, group CEO, Housing.com/ Makaan.com/PropTiger.com, believes, “It is very unfortunate that India’s urban population has to struggle to find decent rented accommodation even as millions of properties lie vacant across major markets. The Model Tenancy Act 2019 might be able to change this paradoxical situation. Provisions announced in the model law would make renting a viable option for tenants as well as property owners, if states show the willingness to adopt it in letter and spirit.”

The rental housing can gain traction with conducive policy framework which shall attract corporate players to provide serviced apartments for their employees. It also gives a lucrative proposition for REITs and FDIs players with steady income as well as appreciation in the property value, “With emerging young workforce entering into Indian employment cycle, BFSI & IT sector encourages mobility of its workforce to different job centers for newer exploring multiple opportunities. This will encourage new emerging platforms like co-living and student housing in order to provide additional housing to create ready services apartments as a new business model,” further Says Hiranandani.

RENTALHOUSING

India’s housing policies have so far largely focused on building more homes and on home ownership and little has been done to promote rental housing. This is a serious lacuna, since rental housing, by itself, can help narrow the Indian housing shortage to quite an extent. As a result, to fulfill its promise of ‘housing for all’, the Modi government is now taking a more holistic viewpoint which includes rental housing as a vital factor

Anuj Puri, Chairman, Anarock Property Consultants

In current day scenario, it’s easy to fetch commercial properties on lease versus residential. Therefore, new national rental housing policy will promote and regulate rental housing platform which will draw individual as well as corporate players into this emerging segment with good influx of investments pumped into the residential rental housing segment

Niranjan Hiranandani, National President, NAREDCO

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STATEISSUE

NAREDCO TELANGANA

TREDA Organised a project study tour for its members to the project site of the biggest affordable housing project in India at Kollur Hyderabad on 25 June 2019 afternoon.

The project is coming up on an area of 124 acres with 117 blocks and 15,660 Affordable housing units and built-up area of about 90,00,000 square feet. The project is mandated to be completed within 2 years from the date of commencement i. e. March 2018. The construction is being done by DEC Infrastructure and projects Ltd which

has undertaken 16,000,000 ft.² of affordable housing in Telangana.

The company has established two brick manufacturing units at the project site with a capacity of 60,000 bricks per day in each plant. The company has four hot mixing plants on site. There are about 10,500 labourers including 1700 masons working in three shifts and they have been provided with primary health care Centre with 10 beds and 24 hours healthcare. The top management of the company led by Shri Anirudh Gupta CMD have spent

three hours with the TREDA members and explained in detail their projects including the shear wall technology being used in some of the projects.

DEC (Formerly Das Engineering) as a part of social responsibility have upgraded some of the specifications including provision of Schindler's lifts, Ultima Paints, pavers blocks etc.

TREDA members were extremely happy with the visit and appreciated the Visionary and philanthropic Sri Anirudh Gupta.

Biggest Affordable Housing Project in India

The top management of the company led by Shri Anirudh Gupta CMD have spent three hours with the TREDA members and explained in detail their projects including the shear wall technology being used in some of the projects


The year 2019 is the year of political uncertainty. With Indian General Elections coming up, it could be the time for

complete government rollover, and any major change in Indian politics directly affects the Indian economy and, in turn, the real estate market. While the sluggish and sagging Indian real estate market has already started witnessing a recovery in 2018 and promises to only get better in the year to come, real estate investors and new home buyers need to be wary of the upcoming political changes and make a calculative move.

In this article we’ll share some excellent real estate investing tips that can help you ride high on your investments in the year 2019:

1 Carefully study the market trends

Well, this is a no-brainer! Before making the big move of investing in the real estate market, you must carefully study the

ZRICKS

INVESTING TIPS

10 Real Estate Investing Tips for 2019

ongoing as well as the upcoming market trends. What worked 2 or 3 years before might not yield favorable returns now. So check with your real estate agent about recent property hotspots; do in-depth research about locality, its neighborhoods, city trends, interest rates; check for developer’s credibility and visit the property site several times before making the final purchase decision.

2 Pay attention to the future market value of your location

While investing in real estate, we always plan to buy a property that can give us higher returns on investment. Determine the FMV of your property or talk to experts to know if the property will work in your favor.

3 Second cities and satellite towns are the new key markets

Thanks to good infrastructure and improved connectivity, recent years have seen a steady shift in buyers’ interest from posh, ‘star-

status’ localities to affordable, transit-oriented homes. Presence of industries, schools, supermarkets, and IT parks have further fueled up growth and promise superior returns in the future as well.

So, if you are planning to buy a new house in 2019, try to capitalize on low-cost locations that offer new opportunities at pocket-friendly prices.

4 Prefer space oversize Compact houses have become

the need of the hour. Majority of the home buyers in Tier 1 and 2 cities are looking for more livable space than its overall area, and the trend doesn’t seem to be fading away anytime soon. So, it’s best to go with the market flow and prefer space oversize when making a choice.

5 Consider amenities and services as a big plus

Builders and real estate developers have been engaged

in the race of luring their customers with new amenities and technologies. Fancy gyms and rooftop access don’t attract home buyers anymore. They look for amenities that help make their life simpler and fuller. To bank on sizable ROI on your investment, invest in a project that offers cutting-edge multifamily developments and eco-friendly environment.

6 Look for ready-to-move-in apartments

Whether you want to move into a new house or want to make a profit-worthy investment, ready-to-move-in apartments are always a favorable choice over under-construction projects. They give you an instant return on investment and help you quickly pay your liabilities.

7 Clean up your credit report

A stellar credit report is a golden ticket to buying a new house. It helps calculate your credit score, credit responsibility,

overall worthiness, and helps you get a home loan at a much lower interest rate. So, before buying a house, work on cleaning up your credit report and pay away all major chunks of debts to make yourself more home loan worthy.

8 Tackle the affordability crises

Purchasing a house is a big investment and a long-term commitment if you are planning to buy it on loan. Carefully calculating the money that you can give away as down payment can help you estimate your loan amount. Try cutting back on the luxuries of life to save more money for your down payment. Always remember, the higher the down payment, the lesser the monthly installment that you need to pay towards your home loan.

9 Partner with an expert A real estate agent knows the

neighborhood better than you. After understanding your requirements and budget, he

can help you buy a home that best fit your needs. However, be clear and precise while narrating him your requirements and make sure he has a proven track record to back his credentials.

10 Care for a thorough home inspection

Whether it’s a new construction or an old house, there could be bigger problems in the smallest corners of the house too. Therefore, getting a home inspection done is a big mandate and something you should never miss on. Go over every single detail of your home and identify issues if any. Tell the owner to either get them fixed before you make the purchase or use them to your favor as price negotiating points.

Real estate investment opens up opportunities for fabulous returns. However, you need to carefully plan your investments for bigger profits. Keep these pointers in mind and make a profitable decision.


DR PATANJALI TRIPATHYFormer MD Odisha Cooperative Housing Corporation

WORLD HOUSING SCENARIO

FOOD, CLOTHING AND SHELTER are the three basic requirements of every citizen for very sustenance. Next to food and clothing, a safe and decent house is one of the most cherished dreams of every house hold. In under developed and developing countries, housing problems get unabated despite plethora of plan a programmes taken up by many governments. In a Joint Study organized by the International

HOUSINGFOR ALL

Challenges and Policies Requirements*

CHALLENGES AND POLICIES

HOUSING FOR ALL - BY 2022

Housing Coalition in collaboration (IHC) with PADCO for presentation at the World Urban Forum III held in 2006 in Vancouver, Canada it was observed “On the social side, housing is, after food and medical care, the first need of vulnerable populations following natural and man-made disasters. A house is not merely a missionary structure. It is embodiment and manifestation of emotions, dreams, sentiments, ambitions and sense of security. A housing complex is also not merely an assimilation of flats, dwelling units and projects.

It is the centre of many economic and social activities. It is a multiplier potentiality, bringing in shops, job, services, slums and many more. Housing is a key input in economic, social, and civic development. Many housing-related activities contribute directly to achieving broader socio-economic development goals. Housing investment is a major driver of economic growth.(1) Mr. Charles Abrams in his Study Report “Housing in the Modern World, Man’s Struggle for Shelter in an Urbanizing World,” succinctly predicted “Failure to settle the problems of land distribution and housing in the world’s cities threatens not only . . . the developing world— it also threatens world stability.(2) Housing is considered as a driver of economic development both in developed economies as well as developing economies.

AFFORDABLE HOUSINGHigh lighting the underlying significance of Affordable Housing, The United Nations on the occasion of World Habitat Day, 2017, launched one month long worldwide campaign namely Urban October and celebration for espousing the cause of affordable housing and calling for citizens’ engagement in urban life worldwide. Affordable housing is key for development and social equality, as observed by the UN. Around 1.6 billion people are living in inadequate housing, one billion of who reside in slums and informal settlements. Dr. Joan Clos, Executive Director of the UN Human Settlements Programme (UN-Habitat) in a message commemorating the World Habitat Day, under the 2017 theme ‘Housing Policies: Affordable Homes’ says “While millions of people

lack suitable homes, the stock of vacant houses is gradually increasing. Ensuring housing affordability is therefore a complex issue of strategic importance for development, social peace and equality. This year’s celebrations are noteworthy as they coincide with the first anniversary of the New Urban Agenda,” adopted at the UN Conference on Housing and Sustainable Urban Development, better known as Habitat III, in Quito, Ecuador, which enshrines urbanization as an indispensable for development and a prerequisite for prosperity and growth.” .(4) An analysis of housing affordability over the last 20 years reveals that despite increasing demand, housing – including rentals – has been largely unaffordable for the majority of the world population.


Addressing the housing needs of the poorest and most vulnerable, especially women, youth and those who live in slums, must be a priority in the development agendas. Promoting sound housing policies is also crucial for climate change, resilience, mobility and energy consumption. The importance of locating housing at the physical – and holistic – centre of our cities cannot be ignored. For housing to contribute to national socio-economic development and achievement of the Sustainable Development Goals (SDGs), the New Urban Agenda calls for placing housing policies at the centre of national urban policies along with strategies to fight poverty, improve health and employment. Each year, World Habitat Day takes on a new theme to promote sustainable development policies to ensure shelter for all – often promoting one of UN-Habitat’s focal areas such as inclusive housing and social services; a safe and healthy living environment, with consideration for children, youth, women, elderly and disabled; affordable and sustainable transport and energy; and job creation. Dr. Joan Clos reiterates “As we strive to create cities for all, an urgent action for achieving affordable homes requires a global commitment to effective and inclusive housing policies,”. (ibid)

HOUSING SCENARIO IN INDIA

Scenario of housing sector in India presents very fascinating trends reflecting both perceptible growth

with ever widening gap in demand and supply of houses in general, and EWS and LIG category in particular. After 71 years of Independence, India still remains a nation where a Decent Shelter is beyond the reach of a major portion of its population. Undoubtedly, after commencement of Five Years Plans since 1951-52, considerable

importance have been ascribed to bring about required development in agriculture, and industrial production. From importing food grains under PL-480 programme from United States, India has now grown up to one of the major Food Grain exporting countries. At the time of Independence, India inherited a divested economy with

high birth and death rate, and many other challenges characterising one of the most under developed economy. At present, every citizen of India is proud to contribute to an untiring process of development in all major sector, economy, agriculture and industry. India is now a Nuclear Super Power with a developed economy, military power and unprecedented Foreign Polices Strategies.

The issues relating to Shelter deserves to get due priority keeping in view its enormity and magnitude. One study reveals that one fifth of the world’s Population lives in Slum. Repaid industrialization and urbanization brings in mass exodus of rural people to urban areas in search of employment and livelihood opportunity. In absence of scientific, inclusive and visionary Urban Planning, the housing shortage scenario, coupled with the need for safe drinking water, sanitation, health and education gets aggravated contributing to deplorable living Conditions of people in urban areas including the metros. The trend of growing housing shortages both in urban and semi-urban areas goes unabated leading to huge gap in demand and supply syndrome. Presently, there is shortage of 19 million housing units in urban areas. By 2022, the housing shortages are estimated to be 48 million units. A study reveals 96% of this housing shortage is only in the Income Group of LIG and EWS category.

KPMG and NAREDCO jointly conducted a Study on Housing Shortages in India in 2012. The Study Report reveals “By 2050, 900

LAUNCHING OF HOUSING FOR ALL-2022 PROGRAMME:17th June, 2015 ushered in a new era with launching of Housing for All Mission by the Hon’ble Prime Minister of India with a view to mitigating the housing shortages in India both in rural and urban areas as well. Pradahan Mantry Awas Yojna (PMAY) is a timely initiative by Government of India in which affordable housing is being provided to the urban poor including Economically Weaker Sections and Low Income Groups with a target of building 20 million affordable houses by 31st March, 2022. PMAY has two components: Pradahan Mantry Awas Yojna-Urban (PMAY-U) and Pradahan Mantry Awas Yojna- Gramin (PMAY-G) and also PMAY-R for the rural poor. Government of India provides financial assistance of Rs.2 trillion to implementing agencies for successful implementation and timely completion of the Scheme. This PMAY is one of the most innovatives and inclusive missions. This Mission has four components viz., i) Slum Redevelopment with private sector participation using land as resource, ii)Affordable Housing through Credit Linked Subsidy, iii) Affordable Housing in Partnership with private and public sector and iv)Beneficiary led house construction/enhancement. Government of India is providing an interest subsidy of 6.5% on housing loans availed by the beneficiaries for a period of 20 years under Credit Link Subsidy Scheme (CLSS) from the start of a loan. The houses under Pradhan Mantri Awas Yojana are constructed through a technology that is eco-friendly, while allotting ground floors in any housing scheme under PMAY, preference will be given to differently able and older persons. Deadline for completion of this ambitious Scheme is March, 2022.

This scheme envisages four Phases: • PMAY Phase-1 from April 2015 to March 2017 to cover 100 cities.• PMAY Phase-2 from April 2017 to March 2019 to cover additional

200 cities.• PMAY Phase-3 from April 2019 to March 2022 to cover the

remaining cities.

PMAY not only envisages for construction of mere a concrete and isolated structure, but necessary also facilitates conversions of essential provisions and amenities like toilet, Saubhagya Yojana electricity connection, Ujjwala Yojana LPG Gas connection, access to drinking water and Jan Dhan banking facilities, etc. Therefore, PMAY is both progressive, hollistic, innovative and inclusive.

The trend of growing housing shortages both in urban and semi-urban areas goes unabated leading to huge gap in demand and supply syndrome. Presently, there is shortage of 19 million housing units in urban areas


million people will be added to Indian cities. The rapid pace of urbanization owing to the rural–urban migration is putting a strain on the urban infrastructure in these cities. As urban development takes place, a growing concern for India’s urban planners is the massive urban housing shortage plaguing the country. The shortage, prominent within the EWS (economically weaker sections) and LIG (lower income groups), is estimated at 18.78 million households in 20122. A thrust on encouraging private sector participation in affordable housing, traditionally the domain of the Government, could provide the answer to India’s urban housing predicament. But as things stand, affordable housing remains a challenging proposition for developers.” (5)

A Technical Committee constituted by the Ministry of Housing and Urban Poverty Alleviation (MHUPA), stated in its report that India’s present urban housing shortage is estimated at nearly 18.78 million households. Besides those living in obsolescent houses, 80 percent of these households are living in congested houses and are in requirement of new houses. The

report also highlights that nearly one million households are living in no serviceable katcha houses, while over half a million households are in homeless conditions. Of the total urban housing shortage, nearly 62 percent houses are self-owned, while 38 percent families live in rented homes. The below table illustrates the break-up of housing shortage in both these categories in urban India.

10 States contribute to three-fourths of the urban housing shortage The State-wise data shows a mixed picture where both developed as well as less developed states have families living in poor housing conditions. Uttar Pradesh has a housing shortage of over three million homes followed by Maharashtra (1.97 mn), West Bengal (1.33 mn), Andhra Pradesh (1.27 mn) and Tamil Nadu (1.25 mn). The top 10 states, in terms of urban housing shortage, contribute to 14.3 million or 76 percent of housing shortage.10 10 Report of the Technical Urban Group (TG-12) on Urban Housing Shortage 2012-17, Ministry of Housing and Urban Poverty Alleviation, September 2012.(Source: Report of the Technical Urban Group (TG-12) on Urban Housing Shortage 2012-17, Ministry of

Tenure Self-owned Rented

Number of families living in old houses 1,395,735 870,417

Families living in katcha houses 770,817 219,183

Number of families living in congestion 9,188,746 5,700,019

Families without homes 326,430 203,570

Total Urban housing shortage 11,681,728 6,993,189

A summary of houses completed, as on 31.7.2018, which shows an upward swing, is shown below:

(in lakh)

Financial year

Houses completed under

IAY

Houses completed under

PMAY-G

Total rural houses

completed

2014-15 11.93 11.93

2015-16 18.23 18.23

2016-17 32.12 0.02 32.14

20 17-18 6.36 38.18 44.54

Sub-total 68.64 38.20 106.84

2018-19 1.06 5.34 6.40

Grand Total 69.7 43.54 113.24

Target under PMAY-G for 2016-17 to 2018-19 100 lakh

Targets assigned to States / UTs 99.89 lakh

Houses sanctioned 87.44 lakh

1st instalment paid 81.26 lakh

2nd instalment paid 62.52 lakh

3rd instalment paid 49.17 lakh

House completed 43.54 lakh

Housing and Urban Poverty Alleviation, September 2012).

Achievements

Major strides have been achieved in implementation of Housing For All Scheme despite bottlenecks. As on 31st March 2018, Ministry has sanctioned 43.87 lakh houses under Pradhan Mantri Awas Yojana (Urban). More than 21.28 lakh houses have been grounded and about 5.2 lakh houses have been completed. (Including RAY component). Government of India have invested a Rs.60,000 crore in the National Urban Housing Fund (NUHF) under the Pradhan Mantri Awas Yojana (PMAY). Hon’ble Union Finance Minister Mr Arun Jaitley during Budget Speech 2018 stated about the creation of this fund - National Urban Housing Fund that would help in building 3.7 million homes in urban areas and 5.1 million homes in rural areas in 2018-2019. The ministry has targeted at constructing 1.2 crore homes for the urban poor and 39.4 lakh homes have already been sanctioned under the scheme. Government has recently increased the maximum carpet area limit for MIG I/II categories for coveted Pradhan Mantri Awas Yojana (PMAY) scheme.

Besides, 1.07 crore rural houses constructed over the last four years under Pradhan Mantri Awaas Yojana -Gramin with the objective of Housing for All by 2022.National Institute of Public Finance & Policy concludes average time for house construction under PMAY-G down to 114 days as against 314 days under erstwhile Indira Awaas Yojana.

It is expected that the targetted houses would be completed as schedule. A recent study conducted by National Institute of Public Finance and Policy (NIPFP), New Delhi, reflected that the average time of construction of a house under PMAY-G has gone down to 114 days as against 314 days under the erstwhile rural housing scheme, i.e. IAY. In view

the current pace of construction of PMAY-G houses and various initiatives of the Ministry to closely track the progress of construction, the target of completion of houses under PMAY-U as well as under PMAY-G would be achieved by March, 2022. It is quite heartening to find that houses are changing the rural landscape and bringing


social transformation in villages across the country.

The Interim Budget 2019 presented on February 1 highlighted the Housing and Urban Affairs Ministry outlay touch over Rs 48,000 crore, a nearly 12 percent increase from Rs 42,965 crore last year. The outlay for the flagship scheme of the government – the Pradhan Mantri AwasYojana (universal housing by 2022) or PMAY has received

an allocation of Rs 25,853 crore compared to Rs 26,405 crore in 2018, an almost 2 percent decrease over last year. Thus, there has a hike of 17 per cent over 2018-19.

A study of information reflected in above Table reveals the states like West Bengal, Madhya Pradesh, Uttar Pradesh, Odisha, Bihar, Chatishgarh, and Rajasthan have achieved substantial progress in completion of houses during the period under report which is

commendable. Performance of many states is quite deplorable as they have not completed even a single house or houses competed is very negligible. However,all these initiatives and progress achieved so far is the glaring testimony of the underlying significance of the Mission-Housing For All -2022. In terms of coverage and amenities associated with the Housing For All, the Mission is a paradigm shift in the history of housing schemes launched in India.

Year wise house completed reportS. No

State Name Houses completed for prior to 2013-2014

Houses completed for 2014-2015





Total Houses completed in 2017-2019**

Total 424067 142266 259014 3247264 2154139 1496281 7723031

1 ARUNACHAL PRADESH 0 0 0 68 0 0 68

2 ASSAM 2785 6948 24345 119180 14350 0 167608

3 BIHAR 252242 63219 70843 241818 107406 0 735528

4 CHHATTISGARH 5857 1416 3940 220682 194487 136281 562663

5 GOA 6 0 7 0 0 0 13

6 GUJARAT 3103 1161 1557 90175 66122 0 162118

7 HARYANA 455 1478 3435 7044 2268 0 14680

8 HIMACHAL PRADESH 195 6 258 4470 1668 0 6597

9 JAMMU AND KASHMIR 61 153 487 7445 3172 0 11318

10 JHARKHAND 6691 3934 7241 199483 114342 64471 396162

11 KERALA 7106 3512 6671 11755 2722 0 31766

12 MADHYA PRADESH 14590 6427 9846 410588 366463 472843 1280757

13 MAHARASHTRA 12163 17121 36538 184734 89037 16536 356129

14 MANIPUR 0 0 874 5009 0 0 5883

15 MEGHALAYA 102 196 2933 2430 0 0 5661

16 MIZORAM 0 153 168 2124 0 0 2445

17 NAGALAND 0 0 14 0 0 0 14

18 ODISHA 6729 5717 10668 336534 266711 150281 776640

19 PUNJAB 66 413 259 6669 1179 0 8586

20 RAJASTHAN 4882 8629 12083 228239 187656 110584 552073

21 SIKKIM 0 72 315 939 0 0 1326

22 TAMIL NADU 75159 3274 31205 101048 34806 953 246445

S. No

State Name Houses completed for prior to 2013-2014






Total Houses completed in 2017-2019**

23 TRIPURA 3 97 2109 19696 715 0 22620

24 UTTAR PRADESH 734 2443 1270 547410 307550 153137 1012544

25 UTTARAKHAND 96 270 1106 7577 2302 0 11351

26 WEST BENGAL 27745 11067 16767 418434 357376 391173 1222562

27 ANDAMAN AND NICOBAR

0 0 0 0 0 0 0

28 DADRA AND NAGAR HAVELI

0 0 0 46 73 22 141

29 DAMAN AND DIU 0 0 0 0 13 0 13

30 LAKSHADWEEP 0 0 0 0 0 0 0

31 PUDUCHERRY 0 0 0 0 0 0 0

32 ANDHRA PRADESH 0 0 0 34912 3440 0 38352

33 KARNATAKA 3297 4560 14075 38755 30281 0 90968

34 TELANGANA 0 0 0 0 0 0 0

Total 424067 142266 259014 3247264 2154139 1496281 7723031


CHALLENGES1) Federal Polity

The toughest challenge impeding implementation of the Scheme – “Housing For All By 2022”and accomplishing desired level of progress is the Federal Polity. The most ambitious and the Flagship programme was launched by the Central Government. Funds have been released to implementing agencies by the Government of India. But unless the State Governments come forward to implement the Programme with all sincerity and mission- mode, this all inclusive programme to provide their dream house to every house-hold remain half way through. Federation is described as a political contrivance intended to reconcile national interest with states’ autonomy. In this context, it is imperative that Housing For All, being an all inclusive programme having objective to provide House to every Household is a matter of national interest need to take precedence with due regards to state autonomy. Very often, political and party interest clash between centre and states with regards to implementation of programme and policies irrespective of the objectives of the programme. It is high time that states need to embark upon implementing the Programme- Housing For All with all sincerity, commitment and pro-activity as it is oriented to bring about a paradigm shift in providing house to every family of the country.

2) Availability of land

Availability of land is a major constraint. Land is an extremely complicated subject with some extremely cumbersome policies. For example, the process of conversion of agricultural land into non-agriculture land is a tedious process; and, the

stamp duty and registration processes are expensive, further escalating housing prices Rising cost of land, litigation and involvement of multiple middle-men and the Benchmark price fixed by the Government make the matter most complicated. Besides, land available at reasonable price with prospect of project viability and are

located at such a far off place, literally far away from the madding crowd that the cost of project in ensuring other infra-structure and amenities become expensive and the targeted customers seldom fascinate to buy the house. The only viable alternative is identification of land in the outskirt of cities. Of course, it would have an

implication on cost of development of infrastructure like, road, provision for drinking water, sanitation sewerage , drainage, power supply, transportation, markets, etc.

3) Adoption of Technology

Adoption of technology for reduction

of cost of construction can play a vital role in implementation of Affordable Housing. Optimum use of building materials, establishment of prefabricated roof, columns manufacturing centres and manufacture of these materials adopting economics of scales will lead to substantial reduction of cost of construction. Of late, only The leading Real Estate Houses like Tata Housing, ATS Infrastructure, Bharatiya Group have taken initiatives to addressee to these challenges with a view to capitalising the huge market potentiality and bridge the demands supply mismatch. The Tata Housing has adopted a long term strategy to construct affordable Housing in a large scale in Bangaluru. It has even set up a pre-cast plant in Bengaluru where pre-cast roof, beams, columns are manufactured and assembled on site to get a complete housing unit reducing cost of construction . The time saved has a direct bearing on reduction of cost of the house.

ROLE OF STAKE-HOLDERS

I) Reserve Bank Of India

The Reserve Bank of India has been playing a proactive role in ensuring issue of series of guidelines for sanction of Credit Link Subsidies Scheme by the commercial banks as per the carpet area of the house stipulated under the PMAY. The Pradhan Mantri Awas Yojana has made the affordable


housing segment attractive to both borrowers and lenders by providing subsidies upfront. The Reserve Bank of India has brought about key changes in home loans during the Bi-Monthly Monetary Policy for Financial Year-2019. Many large Public/Private Sector Banks like State Bank of India, ICICI Bank, Kotak Mahindra Bank and Union Bank of India have started increasing their benchmark marginal cost-based lending rates(MCLR). Besides, the RBI boosted lending for affordable housing in PMAY. It said “ In order to bring greater convergence of the Priority Sector Lending guidelines for housing loans with Affordable Housing Scheme, and to give a fillip to the low-cost housing for the Economically Weaker Sections and Lower Income Groups, it has been decided to revise the housing loan limits for PSL eligibility from existing Rs.28 lakhs to Rs.35 lakhs n metropolitan centres (with population of ten lakh and above), and from existing Rs.20 lakh to Rs. 25 lakh in other centres, provided the overall cost of the dwelling unit in the metropolitan centre and at other centres does not exceed Rs.45 lakh and Rs.30 lakh, respectively.” The central bank further warned that it is closely monitoring the segment of loans up to Rs.2 lakh and will step in to increase the loan-to-value ratio or raise the risk weight for banks should the need arise. “After a careful analysis of the housing loans data, it has been observed that the level of NPAs for ticket size of up to Rs.2 lakh has been

high and is rising briskly,” the RBI monetary policy statement said. “Banks need to strengthen their screening and follow up in respect of lending to this segment.” However, the Reserve Bank has reiterated that it will make it more expensive for banks to give small-ticket loans under the affordable housing scheme and force borrowers to pony up more money if banks don’t tighten standards and address rising bad loans in the segment. It is expected that the initiatives of RBI would foster expeditious and successful implementation of the Housing For All within the deadline.

II) Role of Government of India

In recent past, many revolutionary steps have been taken by Government of India in facilitating effecting coordination for implementation of he Housing For All Programme. Enactment of The Real Estate (Regulation and Development) Act, 2016 is a glaring testimony of such initiative which seeks to protect home-buyers as well as help boost investments in the real estate industry. The Act to establish the Real Estate Regulatory Authority for regulation and promotion of the real estate sector and to ensure sale of plot, apartment of building, as the case may be, or sale of real estate project, in an efficient and transparent manner and to protect the interest of consumers in the real estate sector and to establish an adjudicating mechanism for speedy dispute redressal and also to establish the Appellate Tribunal to hear appeals

from the decisions, directions or orders of the Real Estate Regulatory Authority and the adjudicating officer and for matters connected therewith or incidental thereto. Many states as many as 24 states have already passed similar legislation in their respective State Assembly and established Real Estate Regulatory Authority. RERA have already taken up issues relating to real estate matters and resolved many conflicting matters ensuring accountability and transparency and inculcating confidence of public. Introduction of GST is also a milestone in this direction. Introduction of GST Regime, from July 2017, a major differentiator between markets has been done away with.

An integrated national market will help the real estate sector by way of a common indirect tax structure. Under GST Regime, it is expected that the cost of construction materials will be more or less similar throughout the nation, eliminating one big disparity amongst the various factors responsible for the uneven cost of property. The Real Estate Sector was ascribed utmost importance in the Budget-2019. Benefits under Section(i) BA of Income Tax Act have been further extended for one more year, for all housing projects approved till end of 2019-20. As such, deduction of 100% of profits derived from development of affordable housing projects approved on or after is June, 2016 is available, subject to fulfillment of specified conditions.

This would help faster completion of housing projects. Mr Gagan Randev, National Director, Capital Markets and Investment Services observed “Extension of new Affordable Housing Projects till 2020 would allow the focus on Affordable Housing to continue.

Government favours zero or 3% GST rate on affordable housing Builders have requested the GST Council to consider another option, and that is an effective tax rate of 7.2% but with input tax credit. To bring buyers back to the real estate market, a Group of Ministers set up by the GST Council is studying the feasibility of two very bold proposals, ET Now learn from sources. The first proposal–and one that states may not favour–is

to charge buyers Zero GST on the purchase of a property categorized as affordable housing. The second proposal–and one that in all likelihood will be more acceptable to states–is to levy a 3% GST rate. There is an active contemplation that Centre is very keen on Zero GST rate on affordable housing and has been seeking inputs on its financial implications

It is imperative that Government of India need to take a call on growing demands for substantial tax concession /tax exemption under Affordable Housing segments and liberal policy formulation for above category real estate developments. Tax


concession/ tax exemption would boost early completion of housing projects under EWS and LIG schemes and demand for houses and help bridge the demand supply mismatch.

III) Role of State Governments

State Governments being one of the major stake holders, need to play a vital role in successful implementation and timely completion of the Programme-Housing For All. Many states namely West Bengal, Madhya Pradesh, Uttar Pradesh, Odisha, Bihar, Chatishgarh, and Rajasthan have aggressively embarked upon completion of housing projects under PMAY both PMAY(U) and PMAY(G). However, in respect of allotment of land for construction of housing projects under EWS and LIG scheme under Affordable Housing stag in strategic location, state governments have to take a conscious decision. Unless land is available at the vicinity of urban areas and nearer to the slum and tenements where target groups are residing, housing projects would not be attractive for EWS and LIG category target groups.. Besides, State Governments need to formulate liberal policies with single window system to ensure all required statutory approval from respective authorities within a very limited timeline maximum within one month from date of receipt of project proposal. Drastic reduction/exemption of Stamp Duties would give the fillip for desired level of

growth in the housing projects for EWS and LIG segments.

IV) Role of Real Estate Development Agencies

No doubt, since announcement of Housing For All Programme by the Hon’ble Prime Minister in June,2016 a number of leading Real Estate Development Houses have aggressively dovetailed their upcoming housing projects strictly in consistent with the parameters stipulated under Housing For All Programme. They have adopted strategies accordingly to cross subsidies their loss and to capitalize the growing demand for affordable houses under EWS and LIG clusters.

The Corporate Houses, and Real Estate Developers command a greater role in mitigating the plight of EWS, LIG and LMIG (Lower

MIG Category) households for a dream house within their range of affordability. They too are looking to tap the Government’s Policy Push and are entering the segment in a big way, offering a wide array of options to end-users. The Confederation of Real Estate Developers’ Association of India (CREDAI) – had announced the launch of 375 affordable housing projects across the country with an investment commitment of Rs 70,000 crore.

It is pertinent to mention that India is widely piped to become the world’s third largest economy by 2030, the government is giving a strong push to the affordable housing segment as more and more houses dot sleepy towns, Tier 2 cities and metros of the country. With the affordable housing segment getting infrastructure status, developers are working overtime to tweak existing projects and convert them into affordable housing projects.

The earlier fears of low margins blighting builders’ prospects no longer seem to be a factor as the affordable housing segment is expected to drive volumes in the near term.

Rajesh Krishnan, founder and CEO, Brick Eagle Group, which is managing affordable housing projects on over 1,000 acres across Maharashtra, Tamil Nadu, Gujarat, Rajasthan and Karnataka, says: “Backed by policies and sops to achieve the government’s coveted goal of ‘Housing for All’ by 2022, affordable housing has shifted the developers’ focus from luxury projects. Low-cost housing projects have faster sales velocity since the demand is high. This helps in better cash management. Hence, we are witnessing an increasing interest from even frontline developers who stayed away from this segment due to perceived low margins.” Introduction of GST Regime, from July 2017, paves

tha path for integrated national market to help the real estate sector by way of a common indirect tax structure.

It is expected that the cost of construction materials will be more or less similar throughout the nation, eliminating one big disparity amongst the various factors responsible for the uneven cost of property. Enactment of Real Estate (Regulation and Development) Act in 2016 instill much required confidence of targeted consumers Private real estate developers recognize that they will need to ensure better compliance with delivery schedules and unit specifications. The government’s policy push to cheap housing along with falling interest rates are expected to create an enabling environment for the sector.

Affordable loan rates are not the sole

factor driving the home buying sentiment, especially when it comes to first-time buyers. However, it is certainly one of the crucial considerations. Affordable home loan interest rates are particularly important for budget home buyers since even marginal reductions in EMI burdens can propel their decisions to buy. Needless to add, this customer base is a very important one for the Indian property market, as healthy residential property sector always finds its foundation in strong demand from mid-income and lower middle-income end-users.

It is most opportune time which Real estate Developers need to capitalize. Tit is most imperative that they should not depend only on high-end housing projects. They need to diversify their portfolio and focus on market dynamics and available market potentialities. Study shows that huge inventories of high-end housing properties are still unsold aggravating the capital market scenario and adversely affecting the credit-worthiness of Real Estate Developer before bankers resulting in embargo on fresh sanction of loan under Real estate portfolio. Keeping the huge demand for housing under Affordable segment particularly, EWS, LIG LMIG segment, Real Estate Developers should embark upon in a big way to take up these projects. The profit margin per flat may be thin. But they will get more revenue at the end because of huge volume.

National Realty June - August 2019 4746 National Realty June - August 2019

House hold of this great country. It is painful to see that fellow citizens of this country prefer railway station, bus stands, and pavements to spend the night with family members for years. A house for them is a distant dream and beyond their reach. Let a decent ans safe house for every house hold becomes a reality. With firm commitment and sincere endeavour of all stake holders for the citizenry, this task can be comfortably accomplished.

References1. “Housing for All: Essential to

Economic, Social, and Civic Development” Joint Study organised by the International Housing Coalition in collaboration (IHC) with PADCO for presentation at the World Urban Forum III held in 2006 in Vancouver, Canada.

2. Charles Abrams, “Housing in the Modern World, Man’s Struggle for Shelter in an Urbanizing World,” Joint Center for Urban Studies

of the Massachusetts Institute of Technology and Harvard University.

3. The United Nations Habitat Report on Sustainable Housing for Sustainable Cities- A Policy Framework For Developing Countries, 2012.

4. Dr. Joan Clos Executive Director of the UN Human Settlements Programme (UN-Habitat) in a message commemorating the Day under the 2017 theme ‘Housing Policies: Affordable Homes’

5. “Bridging the Urban Housing Shortage in India”- “The Study prepared by National Real Estate Development Council, in conjunction with KPMG in India -2012.

*Author

Deputy Registrar, Cooperative Societies, I/C

Office of Registrar, Cooperative Societies, Odisha, Bhubaneswar, Odisha.

Former Managing Director, Odisha Cooperative Housing Corporation, Bhubaneswar.

SUGGESTIONS AND CONCLUSION

After prolonged recession, there has been signs of much awaited improvements in market dynamics in respect of Real Estate Sector. This is complimented with timely policy supports from both Government of India and the Reserve Bank of India. However, it is imperative that suitable liberalisation in Taxation Policy by the Government of India and exemption in Stamp Duty by State Governments should be made available.

Location of land of Housing projects under PMAY is most critical for successful implementation of Housing For All scheme. Both Government of India and State Government need to play Partnership role shedding all political difference to accomplish a larger goal to provide a safe, decent, HOUSE with required amenities to all

REAL ESTATE INDUSTRY

Indian Real Estate Industry

OVERVIEW

Introduction

The real estate sector is one of the most globally recognized sectors. Real estate sector comprises four sub sectors - housing, retail, hospitality, and commercial. The growth of this sector is well complemented by the growth of the corporate environment and the demand for office space as well as urban and semi-urban accommodations.

It is also expected that this sector will incur more non-resident Indian (NRI) investments in both the short term and the long term. Bengaluru is expected to be the most favoured property investment destination for NRIs, followed by Ahmedabad, Pune, Chennai, Goa, Delhi and Dehradun.

Market Size

Real estate sector in India is expected to reach a market size of US$ US$ 1 trillion by 2030 from US$ 120 billion in 2017 and contribute 13 per cent of the country’s GDP by 2025. Retail, hospitality and commercial real estate are also growing significantly, providing the much-needed infrastructure for India's growing needs.

Sectors such as IT and ITeS, retail, consulting and e-commerce have registered high demand for office space in recent times. Commercial office stock in India is expected to cross 600 million square feet by 2018 end while office space leasing in the top eight cities is expected to cross 100 million square feet during 2018-20. Co-working space across top seven cities has increased sharply in 2018 (up to September), reaching 3.44 million square feet, compared to 1.11 million square feet for the same period in 2017.

Investments/Developments

The Indian real estate sector has witnessed high growth in recent times with the rise in demand for office as well as residential spaces. Between 2009-18*, Indian real estate sector attracted institutional investments worth US$ 30 billion. Private Equity and Venture Capital investments in the sector reached US$ 4.47 billion in 2018 and US$ 546 million in Jan-Feb 2019.

INDIAN BRAND EQUITY FOUNDATION


According to data released by Department of Industrial Policy and Promotion (DIPP), the construction development sector in India has received Foreign Direct Investment (FDI) equity inflows to the tune of US$ 24.91 billion in the period April 2000-December 2018.

Some of the major investments and developments in this sector are as follows:• Housing launches across top

eight Indian cities increased 75 per cent in 2018 to 182,207 units.

• In March 2019, Embassy Office Parks, India’s first real estate investment trust (REIT) went public.

• Warehousing space in top eight Indian cities increased 22 per cent y-o-y in 2018 to 169 mn sq. ft.

• Around 5.1 million sq. ft. of retail space became operational in top seven Indian cities in 2018.

• In May 2018, Blackstone Group acquired One Indiabulls in Chennai from Indiabulls Real Estate for around Rs 900 crore (US$ 136.9 million).

• In February 2018, DLF bought 11.76 acres of land for Rs 15 billion (US$ 231.7 million) for its expansion in Gurugram, Haryana.

Government Initiatives

The Government of India along with the governments of the respective states has taken several initiatives to encourage the development in the sector. The Smart City Project, where there is a plan to build 100 smart cities, is a prime opportunity for the real estate companies.

Below are some of the other major Government Initiatives:• Under the Pradhan Mantri Awas

Yojana (PMAY) Urban, more than 6.85 million houses have been sanctioned up to December 2018.

• In February 2018, creation of National Urban Housing Fund was approved with an outlay of Rs 60,000 crore (US$ 9.27 billion).

• Under the Pradhan Mantri Awas Yojana (PMAY) Urban 1,427,486 houses have been sanctioned in 2017-18. In March 2018, construction of additional 3,21,567 affordable houses was sanctioned under the scheme.

Road Ahead

The Securities and Exchange Board of India (SEBI) has given its approval

for the Real Estate Investment Trust (REIT) platform which will help in allowing all kinds of investors to invest in the Indian real estate market. It would create an opportunity worth Rs 1.25 trillion (US$ 19.65 billion) in the Indian market over the years. Responding to an increasingly well-informed consumer base and, bearing in mind the aspect of globalisation, Indian real estate developers have shifted gears and accepted fresh challenges. The most marked change has been the shift from family owned businesses to that of professionally managed ones. Real estate developers, in meeting the growing need for managing multiple projects across cities, are also investing in centralised processes to source material and organise manpower and hiring qualified professionals in areas like project management, architecture and engineering.

The growing flow of FDI into Indian real estate is encouraging increased transparency. Developers, in order to attract funding, have revamped their accounting and management systems to meet due diligence standards.

Driven by increasing transparency and returns, private investments in the sector have surged. In 2017, India ranked 19th out of 73 countries in attracting cross-border capital to its property market.

ADVANTAGEINDIA

RobustDemand

AttractiveOpportunities

PolicySupport

IncreasingInvestments

Increasing incomes, urbanisation and economic growth are driving residential and commercial realty demand in India. It has also become a preferred asset class for investments.

Segments like warehousing, hospitality and affordable houses are growing at a fast pace in India, presenting wider opportunities for investors.

Government of India’s aim of ‘Housing for All by 2022’ is driving residential development activity, while the Real Estate (Regulation and Development) Act (RERA) 2016 is making the sector more transparent.

50 National Realty June - August 2019

Builders cannot pay EMIs on behalf of home buyers: NHB

CONSTRAINTS

Regulator blocks realtors’ route to incentivise customers. This move by NHB throws up a red flag about various subvention schemes promoted by some

developers.

Mumbai: Real estate developers will no longer be able to incentivise buyers by paying the latter’s home loan EMIs (equated monthly installments). The National Housing Bank (NHB) has asked mortgage companies to desist from offering loan products that involve servicing of the dues by builders, developers, etc, on behalf of the borrowers. The circular is expected to cut off one of the cheaper sources of funds for builders. Many developers were allowing buyers to book flats with only 5% payment, and balance on delivery by undertaking to repay the EMIs. NHB had first cautioned against subvention schemes (where builder pays part of the interest) in November 2013. “Several complaints continue to be received by the NHB. Further, instances of frauds having been allegedly committed by certain builders using subvention schemes have also been brought to the notice of the NHB,” the regulator said in a circular dated July 19.

“We have not been extending such loans,” said LIC Mutual Fund MD & CEO Vinay Sah. He added that this was aimed at discouraging risks of developer raising construction finance using home loans.

BY ET

“This move by NHB throws up a red flag about various subvention schemes promoted by some developers, and will impact their liquidity and also discourage buyers who were largely attracted to a project due to these schemes,” said Anarock Property Consultants chairman Anuj Puri.

According to industry insiders, it is largely on high-value luxury properties that developers have been using this route to raise money before completion of the project. Speaking to TOI, a banker said that the move was positive for the industry as it would eliminate some of the regulatory arbitrage between housing finance companies (HFCs) and banks.

The NHB said that lenders will have to follow

the directions under the circular for even those loans that have been sanctioned but are yet to be disbursed. HFCs will also have to put in place a system for monitoring the progress of construction of housing projects.

“In these troubled times of stalled and heavily delayed projects, construction progress has become the ‘Holy Grail’. Now, the progress of a project will be monitored and HFCs will only disburse loan amounts when they can verify this vital aspect to their satisfaction,” said Puri.

While lenders are free to provide loans for under-construction apartments, disbursal of housing loans has to be linked to the stages of construction and no upfront disbursal can be made.

NHB

TAKING RISKSMedian

loan-to-valueratio as onMarch 2019

7269.9

64.662.9

Housingfin cos

PSUbanks

Privatebanks

Foreignbanks

52 National Realty June - August 2019NAREDCO HARYANA

76G, Sector-18, Behind HIPA Building, Gurugram - 122015, Haryana E-mail: [email protected] Ph: 0124 4055124

GLOBAL HOUSING INVESTMENT SUMMIT

P r e s e n t s

Wednesday - December 11, 2019

SPONSORSHIP OPTIONSThe organising committee has developed a range of sponsorship opportunities to suit your marketing goals and reach out to the decision makers and users of your products and services. We look forward to your participation in this mega event as a sponsor.

Deliverables Principal Platinum Gold Silver

COST OF SPONSORSHIP (INR in lac) 25 20 15 10

Company Name and Logo in all Communications,NAREDCO website (Print & Electronic Media) √ √ √ √

Company Logo on Page of Convention Website with links √ √ √ √

Company Logo & Profile on sponsorship section of Convention website

750 words

500 words

250 words

150 words

Company Logo on stage backdrop at the inaugural function and during the convention. √ √ √ √

Company Corporate Film to be displayed during Tea Breaks and Start of Sessions in Convention Hall √ √

Company Corporate Film to be displayed during Lunch Time of the respective Sponsor √

Exclusive Branding opportunity like standees, Tent Cards, etc. during Lunch to the respective Sponsor √

Logos on acknowledgment standees at the pre-function area √ √ √ √

Promotional Material of company to be included in Delegate Kit. (A4 Size brochure maximum 2 pages to be supplied by sponsor) √ √ √ √

Networking opportunity √ √ √ √

Branding of Company logo with NAREDCO Haryana on the lanyard √ √

Exclusive Branding opportunity like Standees, etc. near Tea / Coffee area √ √ √ √

Opportunity to distribute corporate gifts to attending delegates. √ √ √ √

Sponsors’ delegates (will include cocktails, free registration for attending the convention, lunch and tea/coffee during the convention)

20 10 5 3

Logo / Text Logo Printed inside Kit bag √ √

Logo on the brochure of next convention of NAREDCO Haryana √ √ √ √

Kitbag (5 Lac)Logo will be placed alongside Principal sponsor logo in the Kitbag (2 delegates as detailed under point no. 14)

Stall Booking: Booth Size - 9 sq. mtr. = 20000 x 9 (Amount = Rs. 1,80,000 + GST)

KEY INVESTMENT OPPORTUNITY

OBJECTIVES• Explore and narrate the opportunities

offered by Gurgaon and Haryana at both national and international levels

• Explore and integrate new ideas and evolving technologies in real estate

• Discuss the present policy framework for implementation of government’s flagship programs such as Housing for All, Affordable Housing etc

• Explore opportunities in new opportunities available in real estate such as Flexible Spaces, Co-living, Student living etc

• Create a platform for discussing skill development in real estate and learning from the best practices

• Create strong and long-term visibility for the partners, sponsors and promoters

AWARD CEREMONY BY HARERA• Best Real Estate Developers• Best Promoters• Best Real Estate Agents• Best Engineer• Best Architecture

NAREDCO AWARDS• Housing Projects• Real Estate Agents• Architectural Awards• Partner Awards

Rs. 1.8 LacSTALL

SPONSORSHIP FORMCOMPANY NAME ............................................................................................................................................... COMPANY PAN NO. ....................................................................

NAME OF CONTACT PERSON .............................................................................................. ADDRESS ............................................................................................................................................................................................................................................................................................................................... TEL. ........................................................................MOBILE ........................................................ EMAIL ........................................................................................................................ FAX ........................................................................

Sponsorship/stall Cost: ............................................................................. Total Cost: .......................................................................... GST @18%will be applicable .......................................................................................... Grand Total Payable (100% advance): ...................................................................

Amount in Words: ..............................................................................................................................................................................................................................................................

SPONSORSHIP DETAILS

PAYMENT DETAILS

PRINCIPALRs. 25 Lac Rs. 5 Lac

KITBAGRs. 20 LacPLATINUM

Rs. 15 Lac eachGOLD

Rs. 10 Lac eachSILVER

(I) Cheque / Demand Draft: in favour of “REDCO HARYANA” payable at Gurugram.

Cheque / Draft No............................................ Dated..................................... Drawn on .......................................................................................................

Note: Send the duly filled form to REDCO HARYANA secretariat with appropriate demand draft/cheque as per the applicable fee structure. Multicity cheque is also acceptable

(II) Bank Transfer / RTGS | BANK NAME : Corporation Bank | ACCOUNT NUMBER : 520401000180101 | IFSC CODE : CORP000440

BRANCH NAME : 440 Sikanderpur, A-218 Opp. Qutub Plaza, DLF Enclave, Phase-I, Gurugram-122002

NAREDCO HARYANA BANK DETAILS

The Oberoi , Gurugram

THE INDIAN ECONOMIC TAKEOFFnaredco.in/pdfs/NR-June-August-2019.pdfArora & Associates Infradevelopers...

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