Wait for basic amenities gets longer for Nada Prabhu Kempe Gowda Layout site allottees

Six years after securing site allotment at the Nada Prabhu KempeGowda Layout (NPKL), buyers are still waiting for basic amenities to begin constructing houses.

The month-on-month progress report given by the Bangalore Development Authority (BDA) has revealed that works at the layout has been stalling for months together.

Data accessed by DH revealed that not even a two-kilometre road has been constructed since May, while drains are built over a three-kilometre stretch in a layout sprawling over 2,650 acres.

“We hardly see any progress, and this has been the case for the last one-and-a-half years. This is a direct impact of the BDA’s inability to accurately assess and release funds to the contractors, according to the works taken up,” said A S Suryakiran from the Nadaprabhu Kempegowda Layout (NPKL) Open Forum.

Problems began two years ago following estimations by the contractor and the BDA engineers that the layout needs more funds to complete infrastructure works. A variation quantity of Rs 650 crore was estimated and a proposal was placed before the BDA board for approval.

“The works will not gather momentum without the approval of the variation quantity. Though the BDA’s internal technical review committee approved the variation, the assessment was further passed to a third-party company, which is yet to submit a final report even after seven months of survey,” Suryakiran added.

BDA officials, on the other hand, said the project was stalled due to Heavy Rains and continuous festivals.

“Though the variation quantity is still under discussion, contractors have been asked to proceed with the work planned according to the initial estimation,” said a senior BDA official.

“We have received initial report from the third party on the assessment. Once we receive the final report, the variation quantity will be released accordingly,” the official added.

Though the site allottees have approached the Real Estate Regulatory Authority (RERA) and the petition committee of the Assembly, work on the ground is yet to gather pace..

1Lakhs housing units remain unsold in Hyderabad Houseliv

HYDERABAD: With the realty sector turning expensive, many housing units are left unsold in Hyderabad.

The State capital has nearly one lakh unsold housing stock, which is the highest in south India.
According to a report by PropTiger, REA India-owned digital real estate transaction and advisory services platform, the unsold stock as of Q3 2022 stand at 99,090.

The city has an unsold inventory of 40 months and this is the second highest overhang among all cities after Delhi (62 months overhang). During Q2, the unsold stock was 82,000, which has now inched closer to one lakh in Q3.

Across the country, the overall unsold inventory in Q3 2022 stood at 7.85 lakh units, with Mumbai on top with 2.72 lakh units. There has been a decline in the inventory overhang in a few cities as the builders in a particular market are likely to take to sell off their unsold stock at the existing sales velocity.

 The realtors attributed the increase in unsold inventory to the rising cost of construction, registration charges and land rates to have gone up. This increased the cost of under-construction apartments and to-be-built houses. On the other hand, launches have been more in Hyderabad which is also one of the reasons for the high unsold inventory.

In Q3 2022, a total of 27,440 Housing units were launched, the second highest in the country after Mumbai (28,880 units). However, the sales are not able to match the launches as 10,570 housing units were sold in Q3.

The markets covered in the report include Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai Metropolitan Region, Delhi-National Capital Region and Pune. Meanwhile, with the festive season in full swing, real estate developers are hopeful of the sector receiving a boost towards recovery, and their wishes are already coming true.

“The real estate industry is bouncing back from the pandemic and subsequent disruptions, and it’s evident from the data trends and insights in our report. Especially with the festive season which has just commenced, we’re experiencing a continuous surge in consumers’ positive sentiments towards property investments,” said Vikas Wadhawan, Group CFO, PropTiger.com, Housing.com, Houseliv.com  and Makaan.com.

KUMBALGODU FLYOVER OPENS TO PUBLIC TODAY

 Bengaluru's longest six-lane flyover is finally set to be open to the public. The Kumbalgodu Flyover  will help commuters skip the congestion in the area. According to Mysuru MP Pratap Simha, one arm of the flyover (Bidadi side) will be open to the public from Wednesday, and the other arm (Bengaluru side) will be opened by Dasara.

With the opening of this flyover, Bengaluru will have five elevated flyovers to bypass traffic on the at-grade level.

The longest elevated stretch in the city is the Electronic City expressway (9.985 km). Work for the project had started in 2006, and it was opened to motorists in 2010. This flyover has four lanes. The third-most elevated stretch in the city is the Peenya flyover (4.3 km), which is also a four-laned one.

The 4.5 km-long Kumbalgodu flyover is the longest six-lane flyover and second-most elevated stretch in the city.

The fourth-most elevated stretch in Bengaluru is the 3.722 km-long flyover that connects Esteem mall to Kogilu Cross on Kempegowda International Airport Road. This is the second longest six-lane flyover in the city.

The fifth-longest flyover in the city is a 3.35 km-long road-cum-rail flyover connecting Jayadeva Hospital junction and Central Silk Board. It is still under construction and being built by the Bangalore Metro Rail Corporation Limited (BMRCL)

Interestingly, the first flyover, as well as the first elevated stretch in the city, was built on the Mysuru Road. The 2.65 km-long flyover was built to connect Town Hall with Sirsi Circle, bypassing the busy KR Market in 1999.

“For long, the Bengaluru-Mysuru Road has been neglected even though the traffic has increased. Kumbalgodu, which was a suburb, has seen rapid growth in recent years, and as a result, there is a spurt in vehicular growth. This road definitely required a flyover as the long-distance vehicles (going beyond Bidadi) will have hassle-free movement while the local traffic near Kumbalgodu can use the road below the flyover,” said Manjunath, a resident of Kengeri.

 However, experts say that flyovers are not really helpful in solving traffic woes.

They say that flyovers essentially move the traffic from one side to another. “Instead of spending huge amounts on building flyovers, the government should invest in promoting public transport so that more and more people shift from their personal vehicles to public transport which will automatically decongest the busy stretches,” said Girish A, a resident of Raja Rajeshwari Nagar.

A flyover is being constructed to decongest RR Nagar junction. The RR Nagar entrance on the Mysuru Road is one of the major bottlenecks holding up traffic. Construction work has been taken up at a cost of Rs 71.45 crore.

HOUSELIV REALTY 

Registration of ancestral property without sale deed made easy in Tamil Nadu

 CHENNAI: People who need to register ancestral properties but unable to do so without original documents have a reason to cheer now. The Commercial Taxes and Registration Department has amended the registration rules under Registration Act 1908 by inserting Section 55A, which stipulates rules for registration of documents provided the sale deed is lost or ancestral document is untraceable.

The State government had earlier passed a circular in this regard and it has been made a legal statute now after including it in the Tamil Nadu government Gazette.Under the amendment, if a previous original deed is lost, the registering officer shall register it only on producing a non-traceable Certificate issued by the police, along with an advertisement published in the local newspaper as to the notice of loss of the previous original deed.

Similarly, if the previous original deed is not available as the property is an ancestral one, the registering officer shall not register such document, unless any revenue record is produced evidencing the applicant’s right over the subject property such as patta copy issued by Revenue Department or tax receipt.

The amendment to the property registration rules in Tamil Nadu also states that producing the previous original deed shall not be necessary where the government or a statutory body is the executant of the document or for such class of documents as may be notified by the Inspector General of Registration, from time to time.

The amended rule states that the registering officer after being satisfied that the description of the property contained in the document presented for registration conforms with the description of the property found in the previous original deed provided under this rule, they shall inscribe the word ‘verified’ on a conspicuous portion of the first page of such title deed and affix his signature with date and thereafter cause scanning of the page containing such inscription as a reference document.

In case revenue records are produced under this rule, the same shall be scanned as the main document and where non-traceable certificates and the advertisement published in the local newspaper are submitted by the applicant, they shall be scanned as reference documents.

In case, an encumbrance as to mortgage, orders on the attachment of property, sale agreement or lease agreement exist over the property, the registering officer shall not register such document if the time limit for filing of the suit has not lapsed or No Objection Certificate is not granted by the appropriate authority or raising of the attachment is not done.

A relief to many
The new clause stipulates rules for registration of documents provided the sale deed is lost or ancestral document is untraceable. 

HOUSELIV REALTY

Plotted Developments Are Trending In The Southern Markets

Plotted developments not only offer flexibility and ease of designing homes based on your preferences, but also provide higher returns over the long term. Hence, the demand for independent homes in southern cities has accelerated over the last couple of years. Read on

In Southern India, land has re-emerged as a key investment asset class over the last few years. While the preference for plotted development has always been there among the local populace in southern cities, the pandemic accelerated the trend of owning plots, believe experts.  

What are the reasons for the increase in demand for plotted development? What are the factors one should keep in mind before making such an investment? Here are detailed insights.

The demand drivers
One of the key reasons for investors’ interest in plots are the higher returns observed in the last few years when compared to any residential apartment. According to a report released earlier this year, during 2018-2021, Hyderabad witnessed the most price appreciation in plots (clocking 21 per cent CAGR).

In Chennai,, the rates of residential plots grew at a CAGR of 18 per cent between 2018 and 2021, and the residential land prices in Bengaluru increased at a CAGR of 13 per cent in the same period.

“The steady rise in demand for plotted development can also be attributed to the following factors:

• With the influx of established developers, homebuyers are now more aware of the concept of plotted developments replete with world-class amenities that are at par with the offerings of several high-rise apartment communities;
• Since the pandemic, there has been a growing preference for developments with low-rise  independent homes, which are spacious;
• Earlier, plotted developments were far from urban centres and were looked upon as long term investments to capitalise on upcoming growth corridors;
• However, Grade-A developers with greater financial resources have started working on plotted developments in emerging markets closer to the city, attracting more potential buyers,” elaborates Praveer Gill, executive VP of one of India’s largest real estate development companies.

The pros and cons of the investment
Over the last few years, southern markets have become highly desirable residential destinations because of the burgeoning job market, robust growth in infrastructure, greater connectivity, and vibrant culture. 

“The affordability of plots in these cities is a key factor driving individuals towards investing in land, an ever-appreciating asset. The pandemic has underlined the need for an independent home with no shared corridors, elevators, stairways, and common spaces. Additionally, investing in plotted developments is highly lucrative because they offer unmatched customisation and flexibility to the buyer. Furthermore, an investor can also enter into a joint venture agreement under RERA with a real estate developer to build a residential or commercial development on these plots. Lastly, this asset class offers lucrative investment opportunities to individuals who rent their properties as vacation homes,” explains Gill.

While buying a plot provides customers with several advantages, there are also certain drawbacks associated with the investment.

“The risk of encroachment is quite high here as a project without fencing or security can be encroached easily. Besides, the tax benefit is available for buying a home; but no such provision is offered for interest paid on money borrowed for the purchase of land/plot. Also, while banks offer loans on homes, plots are considered riskier assets and banks show hesitancy in financing them readily unless purchased from government authority. Many a time, plotted developments also lack basic amenities such as proper approach road, water and electricity supply, and sewage,” mentions Shrinivas Rao, CEO-APAC, Vestian. 

Developers upbeat about this segment 
The pandemic has been a catalyst for changing customer behaviour and preferences. 

Today, homebuyer needs are defined by comfort, convenience, privacy, and security. Hence, developers are now focusing on reducing the demand-supply gap. 

“Consumers are willing to travel that extra mile for the independence from shared walls and the comfort of having luxury spaces like gardens, terraces, and foyers while being surrounded by the convenience of being in the city. The accelerated expansion of urban centres and infrastructure has significantly influenced this trend as well. Hence, more realty players are making a foray into this segment,” adds Gill. 

Developers are also actively venturing into plotted development projects as they provide a relatively better internal rate of return with limited risk.

“For developers, plotted development is a smart strategy to liquidate land banks for raising working capital. Another reason could be a quicker exit from the investment within a shorter time-frame as the project cycle of plotted development is shorter when compared with apartment projects,” says Rao.

In conclusion
The desire for bigger homes is taking precedence as people now seek enhanced and customised spaces. Also, buyers are open to relocating to the outskirts if they offer the right product in their budget.

Further, the location of the property is no longer a determinant, as many companies have embraced hybrid work culture in light of the pandemic; hence, experts believe that plotted developments would continue to account for a steady demand momentum going forward as well. 

Before you buy a plot, do your due-diligence. Here's how:

• Title of the land: One must do a thorough legal verification of the land title as there is a higher probability of litigation in comparison to apartments. There are various approvals and certificates (title deed, release certificate, EC, property tax receipts, etc.) by local authorities that need to be acquired. Hence, approach a lawyer and vet all the documents. Also, one must check and verify the land-use zone as per the city masterplan (whether it is for residential or commercial use);
• Locality check: Location coupled with easy connectivity to major areas are among the major factors that buyers must keep in mind while buying plots. In addition, buyers must do their research and see whether or not any major infrastructure project/s are coming up in and around the area. Infrastructure projects play a significant role in boosting the real estate prospects of an area and hence will enable one to get a high return on their investments. 
• Individual plots vs. those within gated communities: A property within a gated community will provide access to all the amenities similar to that offered by an apartment complex and would be more secure. In the case of independent plots, the risks are higher, especially in terms of safety and security and easy access to amenities.
• Financing a Plot:   It can sometimes be difficult to avail of loans for purchasing a plot when compared to apartments. Also, the criteria for availing of the land loan are different from that of an apartment. Besides, the loan-to-value (LTV) ratio is lower for land loans and there are also stricter terms and conditions laid down by the lender. Hence, one must verify the same with their lender.   Team Houseliv

Housing Becomes More Expensive, Mumbai Least Affordable, Says RBIAmong the four metro cities, Chennai

Among the four metro cities, Chennai and Delhi stood at the second and third positions in terms of least affordable cities.

Housing  affordability in the country has worsened over the past four years, according to a report by the Reserve Bank of India. The house price to income (HPTI) ratio - which indicates housing affordability - in 13 cities across the country increased from 56.1 in March 2015 to 61.5 in March 2019. Mumbai is the least affordable city, according to the RBI report. The house price to income ratio for Mumbai stood at 74.4 compared with 64.1 in March 2015. The overall increase for all 13 cities stood at 61.5 in March 2019, from 56.1 in March 2015, according to the report.

Among the four metro cities, Chennai and Delhi stood at the second and third positions in terms of least affordable cities - with HPTI ratios of 58.6 and 58.5 respectively -  while Kolkata emerged the most affordable city (HPTI ratio of 56.5).

The RBI's quarterly residential asset price monitoring survey, which was conducted in  Mumbai, Chennai, Delhi, Bengaluru  Kolkata, Pune, Jaipur, Chandigarh, Ahmedabad, Lucknow, Bhopal and Bhubaneswar, revealed that Bhubaneswar was the most affordable city in the country with the cheapest real estate.

The RBI report also highlighted that home loan eligibility, as measured by the EMI-to-income (ETI) ratio, remained relatively steady in the past two years. However, Mumbai, Pune and Ahmedabad recorded higher median ETI ratios compared to other cities.

The RBI report projected a worsening housing affordability going forward. 

Team Houseliv

Bengaluru: BBMP begins demolition of encroachments on Mahadevapura

 Bengaluru : Municipal Workers cleaning the Bellandur Lake following water logging due to rain, in Bengaluru on Wednesday. As per the BBMP data, there are 696 encroachments on rajakaluves in the city and majority of the encroachments have been identified in Mahadevapura. Following Chief Minister Basavaraj Bommai on Thursday ordering the clearing of encroachments on rajakaluves, the Bruhat Bengaluru Mahanagara Palike's bulldozers on Friday started demolishing compound walls, a security guard's cabin, makeshift homes and an illegal approach room of an apartment, according to a Deccan Herald report. The report further stated that the Mahadevapura zone, which is one of the worst flood-affected, has been quick to act against encroachers, while the remaining zones are yet to get cracking. 

As per the BBMP data, there are 696 encroachments on rajakaluves in the city and majority of the encroachments have been identified in Mahadevapura, West, Bommanahalli and Yelahanka zones, the Deccan Herald report said.

Additionally, according to News9, BBMP had reportedly identified 175 encroachments in the Mahadevapura area, "after #bengalururains, removal of encroachments begins. This is in #Mahadevapura. BBMP had reportedly identified 175 encroachments in the area. P.S. Revenue Minister @ R Ashok BJP had said encroachments would be removed "mercilessly". #News9SouthDesk @Bengaluru news

Meanwhile, amid losses incurred by heavy rains in Bengaluru, Karnataka Chief Minister Basavaraj Bommai said a decision has been taken to release ₹300 crore to deal with the current situation and the maintenance of basic infrastructure in the city, according to ANI report.

While earlier on Monday, the chief minister held a meeting with the Bangalore Water Supply & Sewerage Board BWSSB, deputy commissioners of 15 districts, and senior officials in regard to rain and floods in the state. Bommai said that the government has taken a decision to release ₹600 crores for the management of floods in Bengaluru and other districts. Bengaluru alone has been allocated 300 crores for the purpose. Bommai said that a central team will arrive in Bengaluru on Tuesday night, to study the rains and flood situation in the state. 

The Karnataka CM said that an alternative plan is being formulated for water supply in Bengaluru. Under it, 8000 borewells under the BWSSB would be restarted to supply water in disrupted areas. The government will also supply water through tankers to the areas with no borewells to prevent any disruption of water supply in Bengaluru, according tp ANI report.

He said that the area of Bengaluru got expanded due to the inclusion of 110 villages into the BBMP limits, which has also cropped up new problems. "We will remove encroachments of roads, canals, and rajakaluves and install the gates for waterholes. Infrastructure will be improved. Since the state capital has received the record rains in the shortest period they need to take it as a challenge and face it unitedly."

Team HOUSELIV