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  • Union Budget 2017 Benefits for Affordable Housing

    Demonetization in 2016 Badly affected the real estate sector hoping for relief
    and expectations from Budget 2017 among all stakeholders in the market. Real estate developers
    and other industry experts have long been demanding Infrastructure status for affordable
    housing for quite sometime. 2017 Budget which announced on Feb 1st Government gives Infrastructure Status for Affordable housing,
    so what this means for housing sector experts say

    #1 Government Incentives & Tax benefits
    Relaxation on long term capital gains, joint development agreements between developer and seller, tax rebates for
    builders on unsold stocks would provide a big relief to the real estate sector,
    which is facing a multi-year slowdown, developers and consultants said

    #2 Funding from Foreign and Regional Banks
    In keeping with ‘Housing for all by 2022’ Government budget announcement for Infrastructure status for affordable housing can push the supply and would provide low interest for the funds sought by the Builders. CREDAI National president said 
    “We must appreciate the fact that the government is very serious on the mission of housing for all
    and in the same light we have seen some extremely positive announcements in the budget today.
    Affordable housing getting infrastructure status will enable efficient supply of housing stock
    in the country and provide benefits associated with it. Additional refinance of Rs 20,000 crore from National Housing Bank and lower interest rates resulting from increased liquidity in the banking sector would add to the funds for the sector at lower costs to the ultimate consumer. Even institutional funding will be easier now.
    #3 Land Procurement for Projects
    The government may release land specifically
    for affordable housing development in central locations of major urban centres in India feel
    industry experts due to providing infrastructure status to affordable housing.

    #4 Built-up area to Carpet Area
    More developers would now enter into affordable housing projects with the change
    in the eligibility norm to carpet area from built up area as well as clarity on
    applicability of 30 sq meter and 60 sq meter criteria.

    What you think about union budget for real estate sector, suggest your thoughts

  • Bangalore real estate budget 2017

    Budget 2017: Expectations & Predictions for real estate


    Come Budget time every year people from all sectors of the industry have expectations and predictions for the year’s budget.Real estate sector consisting of home buyers, builders and investors are no different in this regard. Given the initiatives and policy changes announced in 2016 like RERA, Demonetization, GST there are still many questions stakeholders feel unanswered.

    Lets see what are the expectations of union budget 2017 for the real estate sector.

    Income Tax incentives for First-time Home Buyers
    Budget should address first time home buyer looking to buy a affordable housing project
    to get Income tax benefits for atleast 5 years. Governments effort in this matter
    can make it closer for its objective of Housing for all by 2022.

    Clarity on GST
    Goods and Service Tax 2016 announced last year made the Real estate sector anticipating stressful
    about more clarity on the same. GST is expected to consume service tax and VAT, but it is still unclear which tax rates will be applied when it comes to the construction industry. Budget this year is expected that it brings the much-awaited clarification on the abatement scheme

    Income Tax Savings for Home Loan
    Maximum Tax deduction for home loans at preset is Rs 2 Lakh which is very less given
    the ticket size in metro cities like Mumbai, bangalore or Delhi. Government should increase the
    tax deduction limit and also include tax concessions for home insurance premiums in this year budget.

    House Rent Deduction Limit
    HRA (House Rent Allowance) can be claimed as dedcution in your Salary. However, if you are self-employed,
    or run your own business, the HRA claim can be made for only Rs 24,000 under Section 80GG. The Budget
    can and should address this anomaly.

    Clarity on Definition of Beneficiaries Under Pradhan Mantri Awas Yojana (PMAY)
    Government announcement recently that home loans of upto Rs 12 Lakh will have interest rate of 3%
    and loans upto Rs 9 lakh will have interest of 4 % under the Pradhan Mantri Awas Yojana (PMAY).
    But there is no clarity who will benefit from these schemes so Budget should address this.

    Please Express your thoughts in comments section.

  • RERA 2016

    RERA (Real Estate Regulatory Act 2016)

    RERA Bill 2016 came into force in March 2016 has laid down a regulatory
    framework and Rules by which the real estate sector will operate in India.

    • 70 % of money collected from home buyers will be maintained in a separate escrow account towards the construction of the project.
    • Carpet area has to be clearly defined before the purchase of home.
    • Mandatory disclosure of all project approvals disclosures. Plan,land title status,sub contractors to the project, schedule for completion with the State Real Estate Regulatory Authority (RERA) and thereafter pass the information on to the homebuyers.
    • No Pre-Launch untill all project approvals are in place.
    • State Real Estate Regulatory Authority has to be approached for redressal of grievances against any builder.
    •  In case of Project Delays by Builder, Now, the law requires the developer liable to pay the same interest as the EMI being paid by the buyer to the bank back to the buyer.
    • Violation of RERA by developer can lead to 3 years Jail time with or without a fine.
    • Buyer can now contact the developer in writing within one year of taking possession of the project to demand after sales service in case of any deficiency in the project.
    • Developer cannot make any changes to the plan that had been sold without the written consent of the buyer.

    Mandatory registration of both commercial and residential projects where the land area is over 500 sq.mts or 8 apartments as against 4,000 proposed in the draft Bill in 2013 and 1,000 sq.mts or 12 apartments suggested earlier.  

    Let us know your thoughts and comments 

  • Realty News for the Week Dec 11-18, 2016

    When will be a good time to buy a nice property or my dream home?
                     Demonetization by Government resulted in doom for Real estate sector and many unqualified gurus predicted a downfall in property prices soon. But the unorganized sector saw Property prices being stable for the moment and will go upwards given economy push and Tax sops from the government. so the question rises “When is the good time to buy a property?
                                The Answer is Now.
    Reason #1  –  2/3 BHK apartment selling for Rs 40 to Rs 1.5 Crore in cities like Bangalore was always home loan driven segment and hence it is the least or zero impacted market.  The astute Buyer will start investing heavily in this segment post demonetisation cyclonic clouds withering off.

    Reason #2 – 4 BHK / Row House and Villas segment pricing from Rs 1.50 Cr to Rs 3 Cr segment is an end user, self-living segment and again 80% home loan driven. The seller may offer a good deal today but will hold steady very soon and hence it is a great time to buy.

    Demonetisation may reduce demand for rented properties
                 A person who has 2 properties can have only one property as self-occupied property and exempt from Income Tax. But the second home is taxed based on annual value determined as per section 23(1) of the I-T Act.


    If the second house had never been let out earlier, the taxpayer stands on a weaker
    footing. But the claim of a nil annual value is stronger if the property had been let out
    in earlier years and the economic scenario (such as the demonetisation impact) has
    now resulted in lower rentals or vacancy.

    Read more:

    Office real estate in demand, but home sales fall in 2016
           India’s office real estate market stayed positive while residential sales across the country fell sharply since early this year.
    Read More:- economictimes

    express your thoughts in comments below.

  • realty news roundup nov11-19,2016

    Deciding Factors: Pro-consumer trends reshaping India’s residential property sector
    Housing sector is no exception given the highly changing markets in India, Previously it seemed cast in concrete now looks to give away as per JLL India Head Anuj Puri. Here he outlines 5 factors:
    1) Affordable ticket sizes
    Home buyers seem to love properties in price range Rs 50 – 70 lakh, except Mumbai rest all cities fall in this category. To keep the price tags of their offerings attractive, developers have been reducing the average carpet area of apartments across cities. For example, the average apartment sizes in Mumbai and Bengaluru have, in recent years, shrunk by 12% and 30% respectively.
    Read more ->indianexpress 

    Developers hope home loan interest rates will fall
    On the outcome of demonetization of Rs 500/1000 currency notes, developer community hope home loan interest rate fall as oppose to property price correction. CREDAI (real estate association of India) expressed home loan rate might fall below 7 % in 6-12 months if RBI cuts bank lending rates by 2 %.
    CREDAI president elect Jaxay shah says as per reports in times of india
    that “Securing a housing loan in west is easy where home loan rates are below 5 %,but in India has a documented shortage of housing. if home loan rates are lower there will be a larger pool of home buyers who would avail themselves of loans to buy houses. This could be made possible in six to 12 months. The housing industry will start to grow at a rapid pace while concurrently being in compliance with transparency and fair practices like RERA (Real Estate Regulatory Act),” However he says there wont be price correction since end users use home loan to buy homes.

    Source: times of india

  • Currency Ban of Rs 500/1000: What this means for Real Estate markets in India

             Prime Minister Modi’s announcement to scrap Rs 1000/500 from mid-night of November 8th was a Nightmare and Tsunami for many markets and real estate sector is no exception.

             The real estate being an un-organised sector traditionally in real estate transactions, this crackdown is very likely to hurt the real estate market in India.

    There will be short term and long term impact on the real estate sector as a whole, and Media was buzz about it as you can see below.






    To Summarize here is what it means to home buyers, Builder and developers
    In the short term there will be less Investors as there is no way they can park their Black Money, this will lead to fall in Property Prices. So the currency ban of Rs 1000/500 will definitely curb the black money going to the real estate sector, thereby lowering housing prices in general.

    Resale market or Secondary home market
    Current Home owners and Investors Will see the value of their capital fall even if they had bought home completely out of legally-sourced money. Additionally, if the rental income drops a lot, it can lead to rise in delinquencies on home loans to some extent in the short run.

    In the immediate future, the sector will be under serious pressure to clear inventory volume in residential and land markets by seeing a substantial downward trend. In the long run, we’re going to see a more responsible, transparent real estate sector

    Large Developers will have a minimal impact one who has good brand and governance framework. Sales largely driven by the salaried class or investors with limited cash involvement would not suffer. Smaller developers will be hit largely since they are depended on cash transactions.

    The impact of RERA will further discipline the industry, which will be good for its Overall health in the long term.

    Let me know your thoughts in comments section

  • SBI cuts home loan rate to 9.1 % lowest in 6 years this festive season

    State Bank of India cuts home loan interest rate to 9.1 % its lowest in 6 years this festive season.  The revised rate is effective starting from November 1st after SBI announced a 0.15 % cut in its marginal cost of funds lending rate (MCLR). 

    SBI’s  festive offer rate is valid  from Nov 1, 2016  to Dec 31, 2016.  For women borrowers, SBI has brought down the interest rate to 9.10 %  per annum from 9.25 % while for others to 9.15  % from 9.30 %. 

    So for a home loan of Rs 50 lakh of 30 years, a home buyer can save Rs 542 per month on EMIs. 

    SBI Home Loan Interest rate effective from November 1, 2016


    Source: State Bank of India

    State Bank of India, Managing DIrector Rajnish Kumar told Times of India that  “The rate cut will bring down the equated monthly installment on a Rs 50-lakh loan by Rs 542 per month. Since March, the EMI has come down by over Rs 1,500.” With this reduction, SBI’s cheapest home loans are now 20bps lower than ICICI Bank and HDFC’s cheapest home loan rate of 9.3%.

    As part of the festive season offer, SBI has also waived processing fee on its approved projects and balance transfer of home loans.


  • Bangalore Top Realty News – Oct 16-22, 2016

    RERA will be a Blessing in disguise for Realty Sector
                Real Estate Regulation & Development Act, 2016 (RERA) promises to improve India’s accountability
    and transparency score. India’s present real estate sector lacks industry status, brokerage has no structure
    with Zero qualifications and work is based only on Government guidelines.
               RERA has been voiced as home buyer friendly and its actually a move for developers to re-establish their
    credibility. Following are some of RERA rules coming to the sector
                          – Developers across the country now need to deposit 70% of buyer collections in a separate escrow (Bank) account dedicated to fund land and construction costs for the specific project. This move is certain to improve the liquidity for developers and the subsequent financial clarity would encourage renewed interest in the sector from PE funds, apart from end-users.
                         – Real estate projects will have complete information like Carpet area details, project schedule,
    layout plan, land status, status of project approvals and agreements previously shared verbally will now be documented. While this major real estate reform is sure to re-instate a sense of security among commercial and residential end-users, it also helps developers Clear more inventories.
    Read More:

    Festive Season is giving a positive start to property sales by 10%-15%
                    According to reports in HindustanTimes This festive season people are buying homes that are ready-to-move compared to under-construction properties. Realty trends indicate that buyers are more than willing to push the cheque if the developer can offer them the key to the house.
                      Realty experts agree that the sales have improved this year, registering a 10% to 15% rise – especially when it comes to housing accommodation that costs less than Rs 1 crore. The reason? Developers are concentrating on handing over possession instead of announcing new launches.
                      According to Pankaj Kapoor, managing director, Liases Foras, there is positivity in the market and the momentum will continue for a few more quarters. “Sales have started improving too. There has been a 10% to 15% quarterly improvement in terms of sales, mostly in the below Rs 1 crore segment across cities. As far as unsold inventory is concerned, it is the highest at this juncture and will continue to grow. The total unsold stock currently is around 11 lakh units
    Read More: HindustanTimes
    Please Leave your comments about what you think of this news.


  • Bangalore top realty news for Oct 02-09, 2016

    Rules for Real Estate Act finalised: Urban Minister
                  Union urban development minister M. Venkaiah Naidu said “The Centre has finalized rules for the Real Estate (Regulation and Development) Act, which will be communicated to the states soon and the states have to appoint regulators within a period of six months… it will be a reality now” on the sidelines of ‘India Habitat III-National Report’ release event.
               The Act is a major reform which will bring transparency and accountability in the real estate sector,It will help establish state-level Real Estate Regulatory Authorities to regulate transactions in both residential and commercial projects and ensure timely completion and handover of projects and he urged the private sector to join hands with the Centre to meet the shortage of houses in the country.
                    It will also be required to dispose of complaints within 60 days. Among other provisions,
    the Act prohibits unaccounted money from being pumped into the sector and from now, 70% of the money has to be deposited in bank accounts through cheques.

    Housing sales down 1-2% in Jan-June in seven major cities
               Residential property consultant CBRE said in a statement “”Overall housing sales across the key cities witnessed a dip of 1-2 per cent, while the overall supply saw an increase of  approximately 10 per cent over that of H2 2015″ . Bangalore, Mumbai and NCR accounted for a total 55 % of the total sales in H1 2016 due to sustained buyer interest and stable market conditions.
              The report also indicated Home buyer demand was in the mid-end/ high-end segments in H1 2016 and very limited sales reported  in the premium/luxury segments across all major cities.Over the next few months, the residential market would continue to witness stable demand activity amidst cautious buyer sentiment across most of the tier-I cities in India,”  says CBRE South Asia, Head Residential Services AS Sivaramakrishnan.

    RBI Cuts Repo Rate by 0.25 bps:How Much You Could Save On Home Loan EMIs After RBI Rate Cut
                       The Reserve Bank of India today Oct 5, 2016 cut repo rate by 25 basis points or bps,
    lowering its key lending rate to a six-year low of 6.25 per cent. Banks are expected to pass on the benefit of lower interest rates to customers.
                  But First, Only if banks follows RBI in cutting its interest rates by 25 bps and Pass on the benefits to home loan borrowers the situation is as below for a monthly savings of Rs 488 or Rs 5888 annually on Rs 30 lakh home loan for 9.25 % from 9.5 % currently on a 20 year loan.

    Source :Home Loan NDTV Analysis

    Source :Home Loan NDTV Analysis

    For customers, with Rs 50 lakh and Rs 75 lakh loans, the annual savings would be Rs 9,759 and Rs 14,638 respectively,  assuming the same interest rate and loan tenure.

    Source: NDTV

    Leave your valuable for home buyers who are looking for buying apartments soon.


  • Realty news for the week Sept 18-24, 2016

    Outer Ring Road will boast Bangalore real estate: Colliers
                           Real estate on the Outer ring road in Bangalore will get significant boast with Government decision to fast track Meter Phase 2 18 kms stretch from K.R.Puram to Central Silk Board. Colliers India reports in indiainfoline that all segments Commercial, residential and retial will benefit from this Metro project to become operational by 2020.
    In Commercial Segment – A well-planned public transportation network on ORR will reduce travel time considerably and will help reduce traffic density. Despite a very high absorption rate and maintaining sub 5% vacancy levels, occupiers on ORR have been wary of loss of employees’ productivity lately. This announcement addresses their long-standing clamor for infrastructure upgrades, which will be key to retention and entry of new tenants in the long term.
    Residential Segment: along all 13 metro stations along this corridor, including Central Silk Board and K.R. Puram will witness a boost in demand due to increased connectivity to prime employment hubs. Mahadevpura, Bayappanahalli, Bellandur, Sarjapur, HSR Layout and Marathahalli are some key locations which will witness moderate price appreciation for residential products in mid to long term. Given the current oversupply situation, arrival of Metro in these locations will certainly revive sales.

    Retail Segment: Lastly, metro stations have, off late, been gaining popularity from retail segment. Several small and large format stores have become operational at metro stations in the country, which provide an additional revenue stream to the metro operator to keep fares low and meet debt obligations.

    Housing sector in India set to get big booster shot; here’s how
    As per reports in financial express indian housing sector is well position due to
    some key drivers like favorable demographics (large young population), huge unmet housing demand and improving affordability (wage inflation steady at 10%-11%, and falling inflation in India).
          Along with government’s focus on the “Housing for All” initiative, should boost demand
    for loans and support the housing sector over the next decade or so.
    Read More: financialexpress

    What drives the growth of theme-based housing?
    JLL India, MD,Shubhranshu Pani writes how & what drives the growth of theme-based housing.
    Growing competition and increased globalization indian customers are rapidly exposed to global standards and desire to live a luxurious life. Which in turn is acting as a message for developers to develop classier projects.


    Hot Location and Spacious living spaces and pleasing architectural design are the basic expectation of modern home buyers in the prime residential category. With architecture becoming an important factor in choosing a property, urbane residences have emerged as a successful strategy in the Indian real estate domain.
    To differentiate their residential products, add a unique dimension and meet the growing aspirational demand of buyers, developers are now coming up with theme-based housing projects in various cities of India. such as Delhi NCR, Mumbai, Bangalore, Chennai, Pune, etc., primarily due to their higher concentration of corporate employees with high disposable incomes. The buyers of luxury theme-based projects are niche clients, as these projects target a specific category of clienteles such as HNIs and NRIs, and are customised to meet their demands.

    Theme-based projects are more elegant and are developed on various themes such as international culture, geography, IT, sports, children and senior living, among others. On the architectural front, Egyptian, Arabic, Spanish, Mediterranean, Roman and Moroccan themes are some of those being imprinted on such housing projects at the design level. Sports Cities and Disney-inspired residential projects are among the most popular currently. There is no doubt that theme-based projects help attract both developers and end buyers as like-minded people of same profession, when compared to normal projects.

    Examples Of Themed Luxury Projects

    Bengaluru-based Vakil Housing is coming up with Vakil Hamlet, which is based on medieval English lifestyles and Moghul Garden City, which replicates the Shalimar Gardens
    Purvankara Builders is offering the lifestyle of Venice in Bengaluru at Purva Venezia
    Akshaya Group has tied up with Disney to develop a Disney theme residential project of 47 acres in Chennai
    Another Disney themed project by Supertech is FableCastle on Yamuna Expressway
    Ambrosia by Ajnara Group in Noida is a residential community built on a Spanish theme
    A Rome-themed residential project in Noida is being developed by Supertech
    Lavasa Villas in the Lavasa region of Pune is inspired by the Mediterranean theme
    DLF Ridgewood Estate in Gurgaon is yet another housing project exhibiting Mediterranean-style architecture

    Share your thoughts and comments in the comment section below.