House Sales Up 3% In March Quarter: ReportMumbai, Chennai, Bangalore and Delhi-NCR were the dominant markets, with a share of almost 70-75 per cent in both new launches and sales

REAL ESTATE BENGALURU

 

Sale of residential apartments during the January-March quarter of 2019 rose by 3 per cent on a quarter-on-quarter basis to 33,000 units across seven major cities in the country, according to a report by real estate services and investment firm, CBRE.

According to the report, new launches during the period under review also stood at 33,000 units, up 14 per cent on a quarterly basis.

"While policy reforms such as Real Estate - Regulation and Development Act 2016 (RERA) and the Goods and Services Tax (GST) brought in the much-needed transparency in the residential real estate, the present upward movement is also credited to proactive and customer-centric initiatives undertaken by real estate developers. 

"The overall impact of both these reforms and proactive approach of the developers resulted in new launches and sales witnessing a yearly increase of about 11 per cent and 19 per cent respectively in 2018," it said.

The broad stabilisation of capital values and increasing disposable income also created a suitable environment for the recovery of the residential sector, it added.

Mumbai, Chennai, Bangalore and Delhi-NCR were the dominant markets, with a share of almost 70-75 per cent in both new launches and sales. The other cities where the survey was carried out were Hyderabad, Pune and Kolkata.

Houseliv Realty

Karnataka govt’s proposal lifts mood in property market

Property Bengaluru

BENGALURU: Discussions in the state government about reducing the guidance value of properties have heartened developers and would-be homebuyers, providing further momentum to the real estate sector that’s showing signs of recovery after the second wave of Covid-19.

Last week, revenue minister R Ashoka said that the government was considering revising the guidance value by December and that any decrease would be implemented across Karnataka, barring industrial zones and areas along highways.

Guidance value is the minimum selling price of a property. The government fixes it based on the locality and type of structure. A downward revision will bring down property prices.

As per the norms, the government is supposed to revise the value every year. In January 2019, it announced a hike in the range of 5 to 24 per cent. “The guidance value could not be revised in 2020 because of the pandemic. As the government wants to take it up this year, we have initiated the process,” said KP Mohanraj, inspector general of registration and commissioner of stamps.

There have long been demands to cut the rates, which are very high in some areas and inflate property prices. For instance, the guidance value of a property on MG Road is more than Rs 1.9 lakh per square metre. On Lavelle Road, it is Rs 2 lakh per square metre.

Representatives of the real estate sector said that because of the Covid-linked slowdown, certain properties were being undervalued and sold. “While we welcome the government’s plans to decrease the guidance value, we hope it will consider the ground reality before finalising the rates,” said Suresh Hari, chairman of CREDAI-Bengaluru. He added that property sales had reached 30 per cent of the pre-Covid level.

There will be a knock-on effect on property tax if the guidance value is reduced. “The news has added to the positive mood, especially after the recent property tax muddle caused by BBMP’s flawed zonal classification. The government should also consider slashing stamp duty on registration of properties across price bands,” said MS Shankar, the general secretary of the Forum for People’s Collective Efforts.

Revenue booster

Lower guidance value is expected to increase the number of property registrations, which, in turn, will push the government’s revenue up. In August, more than 2.1 lakh documents were registered, fetching revenue of Rs 1,142 crore as against Rs 969 crore (1.7 lakh documents) in 2020 and Rs 911 crore (1.7 lakh documents) in 2019.

Team

HouseLiv Realty

Karnataka govt’s proposal lifts mood in property market

Bengaluru Real Estate HouseLiv

BENGALURU: Discussions in the state government about reducing the guidance value of properties have heartened developers and would-be homebuyers, providing further momentum to the real estate sector that’s showing signs of recovery after the second wave of Covid-19.

Last week, revenue minister R Ashoka said that the government was considering revising the guidance value by December and that any decrease would be implemented across 

Karnataka

, barring industrial zones and areas along highways.

Guidance value is the minimum selling price of a property. The government fixes it based on the locality and type of structure. A downward revision will bring down property prices.

As per the norms, the government is supposed to revise the value every year. In January 2019, it announced a hike in the range of 5 to 24 per cent. “The guidance value could not be revised in 2020 because of the pandemic. As the government wants to take it up this year, we have initiated the process,” said KP Mohanraj, inspector general of registration and commissioner of stamps.

There have long been demands to cut the rates, which are very high in some areas and inflate property prices. For instance, the guidance value of a property on MG Road is more than Rs 1.9 lakh per square metre. On Lavelle Road, it is Rs 2 lakh per square metre.

Representatives of the real estate sector said that because of the Covid-linked slowdown, certain properties were being undervalued and sold. “While we welcome the government’s plans to decrease the guidance value, we hope it will consider the ground reality before finalising the rates,” said Suresh Hari, chairman of CREDAI-Bengaluru. He added that property sales had reached 30 per cent of the pre-Covid level.

There will be a knock-on effect on property tax if the guidance value is reduced. “The news has added to the positive mood, especially after the recent property tax muddle caused by BBMP’s flawed zonal classification. The government should also consider slashing stamp duty on registration of properties across price bands,” said MS Shankar, the general secretary of the Forum for People’s Collective Efforts.

Revenue booster

Lower guidance value is expected to increase the number of property registrations, which, in turn, will push the government’s revenue up. In August, more than 2.1 lakh documents were registered, fetching revenue of Rs 1,142 crore as against Rs 969 crore (1.7 lakh documents) in 2020 and Rs 911 crore (1.7 lakh documents) in 2019

Team HouseLiv 

Real Estate Bangalore

Property news Bangalore 

HouseLiv Realty

Over 85% realty fear project delays due to second Covid wave, seek urgent relief

HOUSELIVBANGALORE: Over 85 per cent developers in the country expect delays in project completion due to the second wave of Covid-19, according to a survey by the Confederation of Real Estate Developers' Associations of India.
The survey also showed that developers feel relief measures from the government and the Reserve Bank of India (RBI) are of utmost necessity to avoid delay.
The CREDAI report noted that these delays are attributed to a range of factors, with 92 per cent developers experiencing labour shortage at sites, 83 per cent developers are working with less than half the workforce, and over 82 per cent of developers are facing project approval delays.
The real estate sector showed tremendous resilience in bouncing back on a cautious recovery path post the first wave, despite little relief measures."

"However, the second wave has prompted us to reflect and re-evaluate the growth path of the Real estate industry, and we felt it was vital to assess the challenges faced by the customers and industry partners in light of the recent developments.

The findings reveal that the second wave has had a more debilitating impact on the real estate sector than the first wave, the Houseliv  President said.

Further, factors such as recent spike in construction materials including steel and cement have contributed to more than 10 per cent increase in construction cost for more than 88 per cent developers.

The 'Covid Impact Analysis Report' also showed that various financial constraints and liquidity crunch are further adding to the problem, with 77 per cent developers experiencing issues in servicing of existing loans, 85 per cent developers facing disruptions in planned collection, and 69 per cent are facing issues in disbursement of customer home loans.
That the industry body has made a representation to the government citing the survey and requesting the government to infuse urgent financial stimulus and initiate quick progressive measures to assist recovery.

Team

HOUSELIV