Image credits : DNA

In Maharashtra, major land records reform is about to come as State Government of Maharashtra is set to do the geo-mapping and geo-referencing of urban properties and it will help the potential buyers and investors to keep themselves away from being cheated, reduce litigations and ease property transactions. Government will not map the properties on just papers of the property cards but also it will be in terms of geographical co-ordinates through which you can see the property with the help of Google maps. It will help the state governments to move to a clear and guaranteed title of land ownership in all over state.

The problem come in existence when government found that there is existence of multiple land registers such as; department of land registration, department of land records, municipal bodies and stamps whose data bases are not linked with each other. The land prices are shooting up in the sky and due to that most of the persons are trying to cheat the property buyers in transactions. However; the major drawback of the present system is that as a land owner all you need to provide the papers of land with presumptive title of the land without any guarantee of the ownership for that specific land. Whereas; the proposed new system will make the whole process easier for home buyers, small investors, large investors or industries by guaranteeing clear land title. With the help of new system it will be much easier to purchase a land without the help of experts or middleman because you will not need them to check the land records and land title as with the help of map you will be able to check flats or apartments title b yourself. According to Sambhajirao Kadu Patil, Settlement Commissioner and Director of Land Records, “This new system will reduce the cases in which land being sold to multiple parties. We will digitize and restructured all the property cards and they will be available on our website. We are doing mutations of land records, which will be available on our website, so if there will be any transaction at the sub-registrar’s office, it will be automatically recorded here”. The more he added that currently, there are 55 lakh property cards in all over Maharashtra.

According to Kadu Patil, “This is ultimate vision and concept to stop the cheaters by linking property records and municipal records in all the different departments. The more he added that currently we had a record of horizontal properties as well as records of vertical properties, which was constructed on them for the sales to other but they were not captured in those records, but these details are existed in the civic bodies for the purpose of assessment”. However; horizontal properties includes land and vertical properties include flats. Currently all the departments are working to bridge the gap and its big challenge, but we are working on that. The main concern is that whenever people purchase property or any other land, they just want to ensure the entry in the land records, but still there is no scientific geo-referencing of the site is available. And due to that now we are trying to capture the geographical co-ordinates of those properties such as; longitude and latitude on the property cards with an aim to tag them with universal co-ordinates, said one of the Senior Official from the department. The more he added that, We will examine and try to do this on the property cards because it will add the element of uniqueness in each and every property and property buyers or investors will be able to geo-reference as compared to the present system which is misleading enough to property buyers or investors.

According to officials, if property has not been measured properly, so its easy to sold them multiple parties or if plot has been sub-divided in different parts, so there is confusion on the sale and purchase. There will be no mapping of the individual plots or sub-divisions, until owner registered them because it can complicate the whole process. The geo-referencing of the property make it possible for individual apartments and flats to be mapped out with the details of transactions, sales and purchase.

Loan EMIs

Are you among the people who have been waiting to get the key of their houses from past couple of years? Well Sachin Kala is indeed one such man waiting to start staying in the flat which he had booked nearly 4 years back. According to his builders, he was supposed to get his flat back in December 2013 however looks like the wait might be for more long time. He has already paid about 80% value for worth of the property and this property is nowhere close to completion. The only solace for his is that he is not the only one who is going through this. Most of buyers are going through the same problem across the country. With the builders facing financial problems, properties are not being completed on time leading to huge delay in the completion of the projects. Being cash strapped is causing problems in completing the projects. As per the review of the real estate analytics firm PropEquity, between the years 2011-2014, 3,753 projects were offered for possession in the Mumbai Metropolitan Region and out of these projects nearly 45% of them are still under construction. This problem is severe in the NCR region wherein 856 projects were up for possession and out of these projects, 78% are still incomplete and running behind the deadline. The company saw similar patterns in some of the other cities like Chennai, Bengaluru, Pune, Hyderabad, and Kolkata among others.

Reasons for the delay:

There are many reasons, which can be attributed to the delay in the completion of the housing projects. The reason being, there has been a considerable amount of decline in the demand for residential housing due to constant increasing prices of the property. During the boom period, the developers and builders have highlights so many new launches that they are now facing difficulty to complete these projects. Most of the developers are under financial problems as they have used all the money collected from the new projects towards the projects that are still not completed.

The new hope:

From the buyers’ perspective, they have a new hope in the form of the Real Estate Regulatory Bill. The bill has been targeted towards bringing out balance in the currently chaotic real estate industry and has many clauses favorable to the buyers. For example, the bill has proposed that builders and developers are required to deposit around 50% of the amount that they receive from the customer in a very different escrow account. By this way, they will be able to stop diversion of some of the funds. According to this bill, the buyer will have the complete control over their funds as they will be able to ask the developers to return the complete amount in case of the property not being completed in the promised time. At present approval has been given to the bill and it is ready to be presented in the Parliament.

Influences of delayed projects:

When it comes to a first time property buyer, any kind of delay in the completion of the project and them taking over the flat can cause them to undergo serious financial problems. Most of the times buyers will atleast anticipate a delay of about 10-12 months in the completion of the project however, none would have expected the same to go beyond 2 years. According to the reports on PropEquity, the Mumbai Metropolitan Region has seen an average delay of 25 months in the completion of the projects. The average delay in the NCR region is about 33 months. In simple, the bigger a residential project is, the buyer can anticipate a longer delay in possessing the property. Buyers who took loans to pay for the property and expected the EMIs paid to the bank to replace their monthly rents have now landed into a situation, that requires them to pay all these amounts. According to one of resident from Ghaziabad, it is very difficult to pay both the EMIs as well as monthly rental but they are left with no choice. When it comes to a double-income family, the problem remains the same. The same problem is also for the investors especially the ones who have put money towards their second or third houses. For them investment was about earning through the monthly rentals that would have easily covered up the EMIs they need to pay to the bank. Potential delay in the completion of the project can completely make the entire calculations go downslide. Even though everybody is paying EMIs to the bank, there is no sign on earning the monthly rentals.

Loss of tax benefits:

Any delay in the completion of the project means that you will not be able to avail any tax deductions until the project has been completed. Buyers look of tax deduction of about Rs1.5 lakh, which is towards the principal repayment, and a further saving of tax deduction of Rs2 lakh meant for interest on the payment. However, it is important for the buyers to have the possession on the property within 3 years of taking loan to avail benefits under Section 24. In case the buyer is unable to do the same in the span of 3 years they will end up paying tax for about Rs30,000 a year. The buyers however have one option; they can sell out the delayed property and always invest in ready to move in properties. However, they still have the roadblocks in terms of transfer fees and registration charges. People who have taken the property with the intend of renting it out have benefits as the complete interest is tax free even if the project has not been completed in the 3 years of time.

Avoid delayed projects:

Always have enough information pertaining to the construction project as well as the developers. This will avoid any problems later on. Attentiveness among the customers is the key to avoid many problems in the future. Customers can protect themselves from fraud developers and projects. Keeping a track on the record of accomplishment of the developers also avoid lots of problem in these kind of projects. Referring to online forums will help to learn about these developers and it is important to avoid investing and dealing with new groups and developers.

It is important to ensure that the developers have valid license and government’s approval to run the project. There are many instances where in developers have tried to sell out property even before they have ownership of the land. It is important to ensure that the payment of construction is linked with the stages of project completion. Customers need to ensure that they have clauses of delay in the contract and ensure that the developers do not hike the price of the property.  Never fall prey to lure or other offers which talks about big properties for lesser price.  Carefulness is everything today and especially when there is lot of money involved.

CREDAI showcased 500 projects in Real estate Exhibition at Nashik

In December, 2014, the real estate expo- Shelter 2014 was organized by the Confederation of Real Estate Developers Association of India (CREDAI) at Nashik. It has showcased around 500 residential projects with close to around 5,000 apartments. Municipal commissioner, Praveen Gedam and City Mayor, Ashok Murtadak have inaugurated the four-day exhibition at Dongre Hostel Ground along the Gangapur Road area.

Naresh Karda, the secretary of CREDAI, Nashik, stated that, “The response in the real estate exhibition was excellent and more than 100 real estate builders or developers from across the city have participated in the exhibition. The exhibition has showcased more than 500 residential projects where each projects were having the flats ranging from five to 100 flats or more. The more he added that, “Our main aim was to bring the different projects of city at one platform to facilitate and help buyers. This exhibition has saved the time and it has provided various options for properties at every location. It has helped the buyers or end users or investors to know property prices in all over the city and country.

It was the seventh edition of Shelter 2014, and one of the largest real estate exhibition in north Maharashtra as it have a total of 328 stalls. Different properties such as; flats, row houses, twin bungalows, farm houses and other properties were showcased at the expo. Apart from real estate builders, financial institutions and banks have also participated at the expo to help the consumers in home loaning process.

Indian investors investing in US

Indian real estate market is lucrative for investment and attracting the investors, but now Indian investors are also investing in the US real estate market, which is emerging as an attractive investment destination. Indians are showing a lot of interest to buy properties in US, according to property consultant Jones Lang LaSalle (JLL)

As per the report published by the US National Association of Realtors, Indian buyers have purchased the residential properties in US, of worth $5.8 billion in last one year period ending March 2014. This investment magnitude recorded a growth of around 6 per cent over 2013. According to recent reports, Indians have spend $459,028 or Rs 2.81 crore on an average to buy properties in the cities of US such as; Las Vegas, Chicago, Dallas, Los Angeles and New York..

The most interesting finding is, that Indian High Net worth Individuals (HNIs), who have obtained American citizenship and are settled there have several reasons for investing in properties in US. Apart from the love of Indians to country, most of Indians who have become naturalized as US citizens have family interests and as well as they have their business in major American cities, as per the statement of JLL Chairman and Country Head Anuj Puri. He also added that after the steep post-Lehman downturn, several countless investors have been able to snap up properties in American cities at unbelievably low prices as these investments are seeing good ROI because now US real estate market is reviving.

The Reserve Bank of India (RBI), has recently increased the ceiling on outward remittances for those who are buying the overseas property under the (LRS) Liberalised Remittances Scheme to $1, 25,000 from $75,000. This enhanced investment limit is a small, but it’s an important window. For example, Now a married couple can together buy a small property in a US suburb only if they have the inclination to do so., whereas; earlier real estate as an option was entirely withdrawn from the LRS scheme and the limit purview, according to Puri.

Puri, further added that, since a few apartments in the US are currently held by institutional investors who had bought them during crisis from distressed sellers, so for foreign buyers it’s easy to deals with such institutions rather than with individual US house owners.

Small sized property

Residential property sizes are reducing in all over MMR (Mumbai Metropolitan Region) from last two years because now real estate developers are constructing the small size apartments to target the middle and low income groups and keeping the price factor in mind. From 2012 to till now property size has decreased by 8 per cent and it is expected that it will continue as the population grows, property prices increase and most of the people are looking for affordable housing units.

After recent survey by real estate portal it is stated that “It is found that from 2012 property sizes have constantly decreased as prices have almost remained the same or marginally increased in last two years”. This particular trend was started in 2009, but because of huge success it becomes visible in last two years.

In present buyers are ready to compromise on the size of property, if the price falls in their budget and the location is hot. Another reason for the increased number of small-sized property is the affordability aspect. In Mumbai residential properties have seen a meteoric rise over the last few years, but still every individual aspires to own a home in Mumbai. Real estate developers are well aware about this fact and due to that they are working on affordability aspect of buyers and started to launch a property that are in small size.

Mumbai Metropolitan Region is witnessing a rapid growth of population over the last two decades. In world Mumbai is the seventh most populous city and it is in the league of Tokyo and New Delhi. Due to increase population the demand of property in Mumbai is more with the concern of available space. This can be the key contributor to the reducing property sizes because of low price.

Indian real estate sector

The Indian real estate sector is contributing almost 6 per cent in country’s GDP and it also has generated the employment for 76 lakh people. This sector has nourishes the industries like; chemicals, tiles, cement, steel, paints, fixtures and fittings. The growth of Indian economy depends on the growth of its cities and it is the product which real estate developers delivers. The contribution of real estate developers are overshadowed by antipathy against the entire realty sector of country.

On the other side it is true that some of the real estate developers intentionally undertake a slower pace of construction because of slow sale of their apartments. Whereas, in most of the cases the reason for delay is government authorities, who don’t grant timely approvals. Obtaining the 57-odd permissions to begin construction is not cup of tea and it could take as long as two years and it is possible that during this time the cost of acquisition, construction or even holding the land for a project, rises.

The other un-favorable condition for developer can be that he had to rework on specifications of their upcoming as well as ongoing unapproved projects and it can led towards the significant project delays. Apart from an exacerbated cash crunch, developers also had to contend with the ire of buyers. If we consider the unexpected price increases or changes in apartment area after consumers have purchased properties from a real estate developer, these often occur because of changes in the project plans were required by the authorities before issuing an approval. Before two years, revisions were made in the DCR regulations for the MMR (Mumbai Metropolitan Region), which simultaneously road blocked several real estate projects and added to the overall development costs by about 15 per cent.

For real estate industry the fact is simple that there are 20 per cent hikes in construction cost and price increases across most projects in MMR. Whereas due to faulty land acquisition and title disputes the few real estate developer are ready to fly with in the night. It is true for the some cases in the Noida Extension, which has been legally established because of acquisition issues have been the fault of the authorities. However as always the blame is on the part of builders and it’s high time for them as they take a balanced view of the problem

CREDAI-BANM 15th Property exhibition

Event Venue: - CIDCO Exhibition Centre, Vashi.

Date: - Dec. 12, 2014 to Dec. 15, 2014

CREDAI and BANM is going to organize the 15th Property Exhibition for the duration of Dec 12 to Dec 15 in the city Navi Mumbai. CREDAI stands for “The Confederation of Real Estate Developers’ Associations of India” and BANM stands for “Builders Association of Navi Mumbai”, which is the apex body of the organized real estate developers in Navi Mumbai. Whereas; CREDAI is the apex body for private real estate developers in India, which represents 8,800 developers through 20 states and 114 cities.
In present Mumbai is one stop destination for international standards real estate properties for commercial to residential properties. Mumbai is one of the global hot spot for foreign real estate developers and as well as national developers. As we all know that, property investors and buyers have become price and quality conscious and because of that they are searching for affordable property with good quality. In past few decades Indian real estate market is seen to be more investor-friendly as it is attracting the NRIs and foreign investors, which is the main reason for the boost in real estate market that drive demand to greater heights.
As the real estate sector witnessing a positive trend in Mumbai, so it is expected that record number of properties will be exhibit and sold in exhibition, as last year more than 350 properties were sold by the developers under the code of conduct adopted by the members of the CREDAI-BANM. The expo will feature the presence of real estate developers from across Mumbai Metropolitan Region (MMR) and country with the presence of housing finance segment with the organization like; LIC Housing Finance, Tata Capital Housing Finance Limited, HDFC, ICICI Bank, Kotak Mahindra Bank, L&T Finance, Bank of Baroda, Bank of India, Axis Bank, Union Bank of India, Reliance Capital and Canara Bank.
This expo is expected the presence of Bollywood and sports celebrities as in 2013 the same expo has witnessed presence of celebrities like Actor Sunil Shetty and Shilpa Shetty. In property expo there will be plethora of offers housing options for customers to take spot decisions. With the strong membership of more than 1800 leading Developers in Mumbai it is expected that expo will witness the huge success. This year it is expected that participation will be twice as compared to last year.
Life is all about taking the right decision at right time and this time the 15th Property Exhibition 2014 will kicks off at CIDCO Exhibition Centre, Vashi, so it’s great opportunity as it promises something more to everyone who is interested in real estate.

Times Property Expo, 2014

The Times Property Expo is going to provide excellent opportunities for the real estate companies and developers to exhibit the exceptional properties. This is the pivotal trade event for building related business, and it is the great opportunity to get the recognition by leading buyers, and investors in real estate market. The Times Property Expo 2014 will be held in BKC Ground in Mumbai for the duration of four days, ie 27 to 30 Nov. 2014.

The Times Property Expo 2014 Mumbai is the only event and most significant property trade show in India for some serious business in real estate market. Because of advertisement and publicity this expo will get the huge attention from high end buyers and it will be good platform to display high-end properties. In India, real estate sector is booming, and we all know that it is contributing the huge percentage in the nation’s economy. In present, all of the real estate properties providing the international standard and quality right from commercial properties to residential projects. Mumbai is the global hot spot for foreign real estate developers and standing next to the real estate market of London and New York. In India, property investors and buyers have become price and quality conscious and they are searching for the best property in most affordable price. From past few decades Indian real estate market is seen to be more investor-friendly as it is attracting the NRIs and foreign investors, which is the main reason for the boost in real estate market that drive demand to greater heights.

Over a time traditional legacy of architectural richness and drawing inspiration have leveled up the lifestyle experiences, now people are looking beyond mere buildings today. New real estate projects are showcasing their unique and iconic creations to enhance lifestyle experiences and end user experiences by offering comfort, luxury and style. And now Times Property Expo 2014, Mumbai is here to deliver all this at one stop platform. Times Property Expo 2014 is grand invite for the developers, investor’s and buyers. Here at BKC Ground Mumbai, a world class opportunity awaits the real estate developers to come together and develop the network with an elite clientele of individual, organizations and institutional investors, who appreciate quality and affordability to invest in their real estate projects, which deserve the best kind of buyers. Here buyers and investors will be able to make direct contact with builder or his authorized representative for any queries without losing time. And it will eliminate the middle man or agents, so that buyer can save their money (agent fee).

Life is all about taking the right decision at right time and The Times Property Expo 2014, which will kicks off at , BKC Ground Mumbai is the great opportunity and it promises something more to everyone who is interested in real estate.

Infrastructure development Mumbai

In past few years, Mumbai and other metro cities have emerged as the most preferred destination for property investment. After the budget of 2014 the ball of real estate sector is spinning in positive direction because new FDI norms, implementation of REITs and allocation of new funds for infrastructure development. Recently, Indian government has made it clear that there solo objective is to provide the affordable housing units and due to that they are implementing the new policies, which will be helpful to boost the economic growth. Property in Thane and Property in Mumbai is the one of the most preferred destination of investors and high end users because Thane and Mumbai is the most commercial areas and we all know here investment means more than 40 per cent ROI. It’s not easy for common man to own a Property in Thane and Property in Mumbai due to high budget, but now real estate developers are planning and constructing the new affordable housing units for middle class and all this is possible due to reduced size of apartments.

According to real estate experts, there are some areas in Mumbai, which will see a positive momentum and can play a vital role in the real estate market of Mumbai. Most of the Property in Thane and Property in Mumbai are comes in high budget, so just clear the pending inventories, developers are now ready to negotiate on the price and providing some great offers, so that they can attract the pool of investors and end users and after getting the money they will be able to invest in the new real estate projects. Property in Thane and Property in Mumbai are consequently growing and expanding with new commercial and industrial opportunities. In Thane and central Mumbai buyers have a option to purchase the 1BHK, 2BHK, 3BHK, 4BHK and luxury apartments in the price range of 25 lakhs to 2 crores, here apartments size vary from 1,000 sq ft to 3,500 sq ft. Mumbai is famous in all over the world for their super-luxury projects and due to that this city is attracting the Indians as well as NRI’s for investment.

Property in Thane and Property in Mumbai why are the hot-spot? Because of high returns and luxury apartments? The answer is both, realty market in Mumbai is attracting the investors and end-users of premium segment as well. But due to high cost it’s not a cup of tea for everyone to won a Property in Thane and Property in Mumbai. Thane and Mumbai fetch the high rates of appreciation due to metro connectivity, well developed road network, fast-paced development in infrastructure and availability of other basic amenities such as; colleges, schools, super market, shopping malls, banks, ATMs, hospitals and other places. In present even some people are ready to take the loan just for making the investment in these reasons because they know that this investment will bring the good returns in future.

Fastest growing suburbs of Mumbai

Ambernath and Badlapur are the fastest growing suburbs of Mumbai, and this region is the part of Mumbai Metropolitan Region (MMR).. If you will purchase the property in Ambernath and property in Badlapur, so the biggest advantage is the local rail network and soon metro will be there for better connectivity. For professionals who belong from middle class it’s good to own a property in Ambernath and property in Badlapur because here property is affordable and as well as offer the better connectivity through rail and road network. As we all know that most of the people depends and use the rail network for daily traveling, so it’s good to be there. In Ambernath and Badlapur there are many private organizations, so you can still do the job here to save the time, it is expected that in future this region will provide the better employment opportunities.

Property in Badlapur and property in Ambernath, provides better amenities if you compare this region with other suburbs of Mumbai, here property are available in affordable price, so that even common man can buy it. Many real estate developers are launching the new projects in Ambernath and Badlapur because here property rates are low and people are ready to invest in this area as investment as well as end user. Property in Badlapur and property in Ambernath provide the option of 1BHK, 2BHK, 3BHK and 4BHK apartments and the price range starts from Rs 2, 500 to 3,500 per sq ft. For commercial property price are different and high in comparison of residential properties. Many banks, educational institutions and small and medium sized companies are opting the property in this region to start their own business. The price for commercial property starts from Rs 6,000 per sq ft to 7. 500 per sq ft. Ambernath and Badlapur are the region which is very well connected with the Mumbai, Panvel, Dombivli, Pune, Navi Mumbai and other areas.

Property in Badlapur and property in Ambernath provide a large number of under construction projects, where price range starts from Rs. 18 lakhs to Rs. 50 lakhs, so that even common man buys the property. In present most of the developers are planning to launch the low price projects to cater the demand of residential apartments in Mumbai and help to Indian government in Housing for all Campaign. Due to Housing for all Campaign Indian government is making some changes in their policies and RBI norms, so that any individual can easily get the home loan at low interest rates and own the property in their desired city. If you are investor so it’s good time to invest in the property in Badlapur and property in Ambernath because according to some real estate developers Ambernath and Badlapur area will see the rise in property price in next two years because currently many commercial and private companies are setting up their offices in this region.

Resource:

Property in Ambernath and property in Badlapur attract maximum demand for low budget apartments and developers like; Squarefeet Group, GBK Group, Sai Constructions, Mohan Group and Saraswati Infra are constructing low budget projects.