Real Estate News
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Why Compact Homes are Taking Over the Real Estate Sector
In times when nuclear families and living alone are in high demand, the homebuyers are looking to invest in housing that fits their need and desire perfectly. Even though the luxury segment has its charm, but the limitation of the buyers of the luxury segment, the high-end market is suffering. The high demand for compact homes has urged the developers to design homes that are smaller in size. The demand for compact homes has increased across the globe. The idea behind the compact homes is not only to provide homes that are smaller in size but also fit the budget urging the homebuyers to invest in real estate which will cause the increase o...
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50 Smart Cities to Launch by December 2019
The minister of Housing and Urban Development, Hardeep Singh Puri, while giving a speech on August 20th at the NARDECO 15th National Convention revealed that the center would roll out the list of 50 smart cities by December 2019. The ministry has also urged the smart city authorities to choose a project that will directly show the quality of the life of the residents. The ministry is set to bring out the reports on these high impacts on October 2nd, which will be the 150th anniversary of Mahatma Gandhi. The cities that have been selected under smart cities mission have a total of 5,151 projects. The minister also informed that the towns...
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Single Window Clearances Should Become a Reality in the Indian Real Estate Sector
Delays are a part of Indian real estate, and home buyers get involved in the sector knowing that the project completion will get delayed. Most of the delays are due to the delay in approval from various authorities. The need for a single-window approval has never been this necessary as it is now. Government is making efforts to revive the real estate scenario of the country, and not only the homebuyers but also the developers are now demanding a single approval system for the projects. If any approval request gets held up for a certain period, the entire project gets delayed, which not only costs money to the developer but also the homebuy...
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GST Rates Increased to 18 Percent for Maintenance Charges above Rs 7,500
The new tax regimen system, Goods and Service Tax (GST), has made the property purchase and more manageable task for the common man than it was previously. Although, the charges levied on maintenances are higher than before, and especially higher if you already pay a lot for the maintenance. Recently, the finance ministry of the country has clarified that the property owners who pay over Rs 7,500 as monthly maintenance charges on their resident’s welfare association, they will have to pay 18 percent GST on the same. The ministry also released a statement that further clarified. According to the previous tax regime, the applicable tax ...
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Bankruptcy Code Amended: Homebuyers’ Position Strengthen
The Lok Sabha approved Insolvency and Bankruptcy Code (Amendment) Bill, 2019, which means that the three-year-old code stands amended. According to the government, the particular move is supposed to strengthen the role of home buyers, when the resolution plans of embattled real estate developers are worked out. The amendment is divided into seven sections, and it gives the power to the committee of creditors (CoC) of a defaulting company to distribute the proceeds in the resolution process. The amendment also states that the resolution plans for the cases that reach IBC must be resolved within 330 days. The authorities also noted that th...
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Water Conservation Fee to be Applicable in Residential Complexes
The water crisis is the most important environmental issue we are facing. If measures in conserving water are not made now, then we will be facing acute water crisis in future. Few cities in the world have run out of the water and have started rationing them. The groundwater is excessively exploited by the metro cities and to prevent such exploitation, the environmental ministry is planning to levy water conservation fees on industries and infrastructure projects. According to the ministry, the money collected through the levy will use for groundwater recharging projects as identified. More clarity on the fees will come into light as the N...
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According to the Economic Survey, Project Delays are the Major Cause of Concern
On July 4th 2019, Finance Minister Nirmala Sitharaman shared the Centre’s Economic Survey for 2018- 2019 addressed that that major cause of concern among the buyers is the delay in the completion of the construction in the real estate sector. The report also states that the delay in the completion is the reason for major hindrance in the way of infrastructure in India. The survey authored by the Chief Economic Advisor Krishnamurthy V Subramaniam states that “One of the important concerns in the real estate sector is the legal battle being fought by homebuyers against the builders for delaying projects.” The report further states that...
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Banks Lower Interest Rates Making Home Loans More Affordable
From July 1st, the banks and financial institutes of the country have reduced their home loan lending rates. The decision has come after the Reserve Bank of India has reduced its repo rates. Repo rate is the rate at which the country’s banking regulator, RBI, lends money to the banks and financial institutes. The RBI has already reduced the repo rate to 75 basis points this year so far. The banks that have reduced their MCLR rates are Punjab National Bank and Central Bank of India. Private Banks like ICICI has also reduced their MCLR by 10 basis points. To explain MCLR in layman’s terms, it is the benchmarking lending rate at which ...
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According to the RBI Study, Housing has Become Less Affordable
The builders have been complaining of the slowdown in sales in the real estate sector for a while now. In a recent study conducted by the banking regulator of the country, Reserve Bank of India stated that the housing has become less affordable in the last four years. The study indicates that the developers have been holding onto the prices and have not done any major price correction. According to the study, Mumbai remains the most unaffordable city in the country while Bhubaneswar is the cheapest city among the major cities for real estate. The study measured the affordability by comparing the monthly income of the average home loan borr...
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Budget 2019 Brings Both Cheer and Disappointment to the Developers
For a long while, the real estate sector of the country has been awaiting the sector to be awarded the industry sector. The benefits that will come with the new status would be plenty. And this year developers were hoping for the Finance Minister, Nirmala Shanthiraman, to give the real estate sector the long due recognition and promote it to the industry sector but they were left disappointed. However, the government did roll out new rules that have brought cheers to not just the developers but also the homebuyers. For the affordable housing segment, an additional tax deduction of Rs 1.5 lacs has been provided on the interest paid on the h...
