Real estate market declined by 6%

After surveys it’s clear that the investment in real estate sector by various public and private sources in all over the country has declined by six per cent in last four years of duration. It is clear that for the year 2013 to 2014 the investment in real estate sector in country fell to Rs. 14.30 lacs crore whereas; for the year 2011 to 2012 it was approx. Rs 15.2 lacs crore.

After the survey of Assocham, real estate experts find that more than 76 per cent of total investment in real estate was attracted by the various real estate projects and rest was from non-starter real estate projects in the duration of 2011 to 12 and 2014 to 15.

State wise analysis of Assocham:

After state wise analysis it is clear that for the period of 2014 to 2015 the top five states by the highest share in real estate sector in terms of investments are 21 per cent by Maharashtra, 14 per cent by Uttar Pradesh, 13 per cent by Gujarat, 12 per cent by Karnataka and 8 per cent by Haryana. Coming to the CAGR (compounded annual growth rate) the Assam has witnessed the maximum growth rate in terms of attracting the rela estate investments for the year of 2011 to 2012 and 2014 to 2015 which was 82 per cent followed by 19 percent by Bihar, 17 per cent by Odisha, 16 per cent by Uttar Pradesh and 12 per cent by Uttarakhand.

However; the states which recorded the maximum fall in real estate investments are 40 per cent in Jharkhand, 37 per cent in Himachal Pradesh, 29 per cent in Madhya Pradesh, 16 per cent in Haryana and 7 per cent in Gujarat. The survey was draw by the feedback of 100 big and small companies who are active in the sector of real estate in top cities of the country such as; Chennai, Indore, Lucknow, Mumbai, Delhi, Bangalore, Jaipur, Ahmedabad, Hyderabad and Pune.

Most of the real estate developers are veering the poll and it’s clear that they are down just due to the lack of focus of government from improving demand or supply in real estate sector. Whereas; the survey indicated that the previous and latest Union Budgets was disappointed the real estate sector with the exclusion of the new plan ie. to develop the 100 Smart Cities in the country. Apart from all that the increase in the rate of service taxes by 14 per cent makes the real estate sector but more expensive and it has direct impact on the sales and it is clear that it will make down the real purchasing power of average investors and end users in country.

All the real estate developers are have concern about the increase in excise duty on goods and service tax on construction and also increased on petrol and diesel prices with increase in freight rates on the cement which lead the construction cost in real estate sector. Now there is need to speeding up procedural requirements in the field of real estate sector which have just passed through the single window clearance system from different approvals to increase the operational efficiencies and cost of investment along with the stable and predictable policy framework in real estate sector.

Train in return for compensation of land

Two farmers of Una district, which is in Himachal Pradesh, may become the owner of Delhi – Una Janshatabdi Express, if court order will be executed on April 16, 2015.

Additional district and sessions judge Mukesh Bansal, associated with court of Una ordered on April 9 to attach the Delhi – Una Janshatabdi, if railway is not able to pay the compensation for two different farmers, as there land was acquired for new railway track which is also known as; Una – Amb track in the year 1998. Finally court orders that if railways failed to pay Rs 35 lakh to Madan Lal and Mela Ram by April 15, so train will be stopped at Una on the date April 16 at 5 am and attached by the court. However Lal is entitled for Rs 26.53 lakh and Ram is entitled for Rs 8.91 lakh and after not receiving the money Lal and Ram moved to court against the delay in compensation and after that Himachal Pradesh HC directed to railways in 2013 to pay the money within next six weeks.

As per the statement of Advocate Arun Kumar Saini, who represented the side of farmers, Railways had acquired the land in year 1998, and due to late in compensation two farmers filed a case for higher compensation. The court had given the time of three months to railways for filing an appeal against the compensation and verdict. In the response railways moved the HC in 2013 and HC stayed the order with response to increase the compensation and deposited in the court within next six weeks. But still railways haven’t deposited the current amount.

High Court had also made it clear that after six weeks, parties will be free to execute the order, however later the farmers moved the lower court and after hearing the plea in lower court on April 9, Additional district and sessions judge Mukesh Bansal ordered to attach the Janshatabadi train. We would submit the list of four trains, Janshatabdi and Himachal Express and court moved with decision to attach the Janshatabdi.