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This week, the Central Government is seems to intend the passage of Real Estate Bill in parliament, and the Cabinet is likely to approve the previous few changes that have been made after the recommendations of the select committee. According to sources, the housing ministry has incorporated approx. all the amendments which were recommended by the panel and due to that now there is no scope for political party to oppose this Real Estate Bill with an aim to protecting the interest of home buyers or other consumers in the real estate industry.

According to one of the Government official, “We are positively hopeful about the Real Estate Bill since there are many home buyers and other people in the real estate industry who are suffering from no mechanism or framework to get protect from any kind of unfair trade practice or exploitation by the real estate developers and real estate firms”. The more he added that the Cabinet has approved the changes which were mandatory as the revised bill is taken up for discussion. It is expected that new recommendations which have been accommodate in the bill will include the provision of parity in the interest payable by consumer and developer in case of any default by either.

In Presents, real estate developers only pay 2 to 3 percent interest in case of their default whereas; consumers are liable to pay about 16 to 18 percent for their default. However; on the same issue the Rajya Sabha panel had said that the interest rate payable by the promoters and the interest rate payable by the allottees should be the same in eventuality of any default by either of them. The panel was also recommended that 50 percent of payments made by the home buyers for a real estate project be kept in a separate account and it should be used for that specific project only.

However; in addition to the provision of imprisonment of up to three years proposed by the government, the committee had recommended that the clause of imprisonment for a realtor should be failing to abide by the orders of the appellate tribunal.

real estate developers in mumbai

We all know that Mumbai is the financial capital of the country and it is the city where most of the leading real estate developers have their head offices. According to recent survey Bengaluru based real estate firms are well impressed with the skills of those who are working in the Mumbai based real estate firms and due to that most of the Bengaluru based leading real estate developers are approaching to Sr. executives and consultants for the top position who are working for Mumbai based developers.

In last, one year more than 15 Sr. executives from the real estate firms of Mumbai have moved to Bengaluru. In the latest moves, Om Ahuja, CEO of residential services at Jones Lang LaSalle in Mumbai head office, joined Brigade group as the CEO of residential services in Bengaluru. However; 8 months before Ozone group hired the Srinivasan Gopalan on the position of CEO whereas; earlier he was the COO and CFO of Wadhwa group, a Mumbai based real estate firm. Bhavesh Kamdar was earlier with L&T Realty, but recently he joined Embassy group as the head of leasing department.

Om Ahuja, who recently joined Brigade group as the CEO of residential services stated that “In Bengaluru the prospect of joining new company and getting more exposure in real estate sector is much more and due to that I joined Brigade group, which has very good track record in building the best quality integrated townships. Apart from that Brigade group has been recently rated as the great place to work and due to these mentioned reasons I decided to move to Bengaluru and it was easy for me even after spending 20 years in Mumbai.”

Why real estate market of Bengaluru is attracting real estate professional?

In present, Bengaluru is witnessing huge growth in terms of property development as well as price of real estate market and due to that in past eight months of duration the city has witness the sales of more than nine million square feet in commercial space. These days Mumbai based real estate developers are focusing on the luxury residential and commercial development, whereas; in Bengaluru there is demand for office space and city has fuelled the demand for homes buyers as well. However; the city has accounted more than 49 per cent office space absorption in 2014.

According to the reports of Colliers International, Bengaluru has absorbed 13.77 million sq ft of office space in 2014. The Gopalan added that Bengaluru based real estate developers are transparent, professionals and they willing to share project ownership with other private equity firms. In Mumbai, CFO’s of the organizations run the whole show, but in Bengaluru it is the CEO who is responsible to call the shots with the focused operation.

Professionals are running Bengaluru based real estate developers and due to that they are interested in hiring the professionals on frontline. As per the real estate experts, the houses in Bengaluru are listed with the respected names such as; Prestige, Brigade, Puravankara and Sobha as well as some of the unlisted real estate developers such as; Embassy group, RMZ and more. Apart from all these as per the real estate experts companies in Bengaluru are offering better career and growth.

More than 15 Sr. executives from the real estate firms of Mumbai have moved to Bengaluru

We all know that Mumbai is the financial capital of the country and it is the city where most of the leading real estate developers have their head offices. According to recent survey Bengaluru based real estate firms are well impressed with the skills of those who are working in the Mumbai based real estate firms and due to that most of the Bengaluru based leading real estate are approaching to Sr. Executives and consultants for the top position who are working for Mumbai’s developers.

In last, one year more than 15 Sr. executives from the real estate firms of Mumbai have moved to Bengaluru, yet it is true that currently the sale of residential property and apartments in the financial capital of country is slow. In the latest moves, Om Ahuja, CEO of residential services at Jones Lang LaSalle in Mumbai head office, joined Brigade group as the CEO of residential services in Bengaluru. However; 8 months before Ozone group hired the Srinivasan Gopalan on the position of CEO whereas; earlier he was the COO and CFO of Wadhwa group, a Mumbai based real estate firm. Bhavesh Kamdar was earlier with L&T Realty, but recently he joined Embassy group as the head of leasing department.

Om Ahuja, who recently joined Brigade group, stated that in Bengaluru the prospect of joining new company as CEO in the largest division of Brigade group has credible track record and I think that experience in building the best quality integrated townships is responsible to list it in stock exchanges and it has been also rated as the great place to work from last few years and due to that the decision to move to Bengaluru was easy for me even after spending 20 years in Mumbai.

Why real estate market of Bengaluru is attracting real estate professional?

On the issue of moving to Bengaluru, the experts are saying that the real estate market in Mumbai getting saturated and due to that now it’s difficult to move the prices up. In Mumbai real estate investors have made just little money in past two to three years, but these days Bengaluru is witnessing the huge growth in terms of property development as well as price of real estate market and due to that in past eight months of duration the city has witness the sales of more than nine million square feet of commercial space. In Mumbai the property prices has been decline from 7 to 12 per cent from October 2014, with the total drop of 15 per cent on its peak level, as per the reports of Edelweiss Securities.

Current real estate market of Bengaluru:

These days Mumbai based real estate developers are battling high on the residential and commercial inventories.  However; the number of unsold residential and commercial units in the city was highest in India which was approx. 200,000 till December 2014. But it was expected that this quarter Mumbai will take more than 11. 5 quarters to sale its unsold inventory and NCR (National Capital Region) 13.8 quarters, while Bengaluru will take only 7 quarters. Still there is boom for office space and it is fuelled the demand for homes buyers in Bengaluru, however; the city has accounted more than 49 per cent office space absorption in 2014, according to the reports of Colliers International Bengaluru has absorbed 13.77 million sq ft of office space in 2014.

The Gopalan added that Bengaluru based real estate developers are more transparent, professionals and they willing to share project ownership with other private equity firms however; these are not the case with Mumbai based real estate developers. In Mumbai, CFO’s of the organizations run the whole show, but in Bengaluru it is the CEO who is responsible to call the shots with the focused operation.

Potential investors considering investing in the Mumbai Metropolitan region are in for a shock as the realty market around the MMR is competing with that of California, in the U.S. Added to the existing rush is the proposed metro rail project which is all set to catapult the market price further.

The illogical rise in prices of land — residential and office spaces — may act as a stumbling block for the growth according to the industry bodies and NRIs. Bankers too opine that such a scenario would prove to be counter-productive to the expected industrial eco-system.

The California-based NRI are put off by the mad realty rush. “This is a never-before-price and there is no logic behind it. When I make a realistic comparison, land around California is cheaper than the eastern Mumbai region. Investing here doesn’t make any business sense” they say.

While an acre near Livemore in California costs about Rs. 5.5 crore, the same stretch is priced at Rs.24 crore on the outskirts of Thane.

The Confederation of Indian Industries (CII) is of the opinion that the development is definitely a setback for the potential investors. “Not a happy situation. Industrialists are expected to invest on machinery and other aspects besides land. The break-even period will be delayed significantly which may discourage potential investors,” he felt. On the other hand, the present situation is seen as once-in-a-lifetime opportunity for the small and big real estate firms to make a quick buck. The government has banned conversion of agricultural land and named hundreds of illegal layouts to prevent price rise but it did not yield any result. Market experts say that it’s realty bubble in the making.

“The local people are becoming millionaires overnight, purchasing swanky cars and blowing up money on luxuries. Now you see the bubble bursting as the economy is slowing down and the people have stopped making much inquiries about investing in the region. Illogical rise in prices of land may act as a stumbling block for growth.