Monday, 21 May 2018

Residential sales in top 8 cities grew 13% in 2017-18: Report

Affordable housing continued to be the mainstay of the demand as the contribution of this segment to the overall sales in tier I cities

MUMBAI: Residential sales across top 8 tier I cities of India has grown 13% during the financial year 2017-18 (April-March) with Mumbai Metropolitan Region witnessing maximum growth of 25%, showed data from Liases Foras Ratings & Research.

Affordable housing continued to be the mainstay of the demand as the contribution of this segment to the overall sales in tier I cities including Mumbai, Delhi-NCR, Bengaluru, Pune, Hyderabad, Chennai, Kolkata and Ahmedabad stood at 18% during the fourth quarter.

The government has been pushing affordable housing through various schemes and incentives. Lower home loan interest rates and necessary impetus by the government to affordable housing has played a key role pushing sales in this segment.

The government has supported the housing sector through affordable housing fund, lower Goods & Services Tax (GST) rates, increased tenure of loans under Credit Linked Subsidy Scheme (CLSS) of Pradhan Mantri Awas Yojana (PMAY) and extended income tax benefits to apartments of carpet area of 645 sq ft.

Mumbai was followed by Delhi-National Capital Region with 19% increase in sales for the year. In south zone, Chennai and Bangalore have shown a slow down with sales numbers showing a drop of 15% and 5%, respectively while Hyderabad witnessed a growth of 17%.

On year-on-year basis, new launches across these top 8 markets have declined in most cities except in Mumbai, Hyderabad and Kolkata where launches grew 42%, 53% and 29%, respectively.

With a growth in sales and drop in new launches the unsold inventory in the tier 1 cities have dropped by 3% from a year ago to 9.29 lakh units as on March end.

During the fourth quarter ended March, residential sales across these tier I cities increased by 14% with Hyderabad emerging as the leader with a 33% increase followed by Bangalore with 30% rise, MMR with 19% growth and 14% increase in Pune. Kolkata is the only city that witnessed a marginal decline of 1%.

During the fourth quarter, sales in affordable segment with price tag of less than Rs 25 lakh increased 24% from a year ago. Sales in the cost bracket of Rs 25 lakh to Rs 50 lakh increased by 4% on an annual basis. Sales in the cost bracket of Rs 50 lakh to Rs 1 crore increased by 17%, while sales in luxury segment with Rs 1 crore to Rs 2 crore rose 13%. Sales in ultra-luxury segment above Rs 2 crore rose 13%.

Weighted average price across tier I cities witnessed a muted increase of 1%. Marginal decline of 1% was observed in Pune and NCR while prices dropped by 4% in Chennai. Prices in Ahmedabad witnessed no change while a slight increase of 1% was observed in Hyderabad , Kolkata , MMR and Pune each, the data showed.

NCR led with the highest contribution to sales in the affordable segment with 26% followed by MMR with 23%, Ahmedabad with 20% and Pune with 15% of total sales in this segment. All 8 cities cumulatively sold highest in cost range of Rs 25 lakh – Rs 50 lakh, with sales of 35% of total sales, followed by cost range of Rs 50 lakh to Rs 1 crore at 30% of total sales.

Among regions, MMR contributed the highest to overall sales at 17,143 units or 25% of total sales followed by NCR at 15,326 units or 22% of total sales, the data showed.

During the quarter, MMR added the highest new launches, with a contribution of 25% followed by Bangalore 17% and NCR 11%. Among various cost segments, the cost bracket of Rs 50 lakh to Rs 1 crore witnessed maximum new launches amounting to 39% of total new supply followed by the cost brackets of Rs 25 lakhs to Rs 50 lakhs with 36% contribution.

The Rs 50 lakh to Rs 1 crore segment of MMR witnessed maximum launches of 5,545 units contributing 11% of the total new launches across eight tier 1 cities. Kolkata contributed 29% of the new launches in the affordable segment with less than Rs 25 lakh followed by MMR 25% and Pune 24%.

Sunday, 13 May 2018

Kochi corporation to tighten norms for high-rises with basements

Corporation officials will strictly monitor the construction of highrises that utilize maximum floor area ratio (FAR) in saturated areas like MG Road

KOCHI: After an under-construction building caved in recently in Kaloor, corporation is planning to impose strict regulations and monitor the construction works of high-rises that will have two or three basements. 

Corporation officials will strictly monitor the construction of high-rises that utilize maximum floor area ratio (FAR) in saturated areas like MG Road.

"Construction works that use maximum floor area will be monitored right from the time building permit is issued until the work is completed. We have noticed that many buildings are constructing two or three basements. Given the soil condition in Kochi, such constructions will have to be regulated. We are planning to introduce stricter regulations in this context," said mayor Soumini Jain.

The regulations for such buildings will be framed after consulting geotechnical experts and structural engineers. "The condition of soil in Kochi is different. Ata particular site, hard soil can be found by digging up to 2m whereas for the adjacent property you might have to dig up a lot more to get hard soil," said superintending engineer of the corporation KD Ajayaghosh.

"As far as we conducted inspection, it is found that developing more basement floors should require higher setback area (the space left vacant between boundaries of the premises and the structure. We are giving permit for buildings as per Kerala Municipal Building Rules (KMBR). As of now, KMBR doesn't have such regulations. So, corporation will have to take the initiative of putting some regulations in this regard. On Wednesday, the corporation council is expected to conduct a preliminary discussion in this case," he said.

A technical committee - led by two professors from Government Engineering College, Thrissur - will begin site inspection on Tuesday. "They will look at the causes that led to the collapse of the structure and suggest measures to ensure safety. The collector has also deployed a technical committee. A clear picture on the exact reasons which led to the collapse will be available in a week," Ajayaghosh said.

At the same time, corporation authorities are yet to respond to KMRL's demand that the agency also should be consulted before giving permit to highrises along Metro corridor. According to KMRL officials, they had sent a letter to the district collector suggesting that the agency's approval should also be sought in cases of highrises.

District collector K Mohammed Y Safirulla said that local self-government departments are responsible for issuing building permits as well as introducing restrictions on highrises along the Metro stretch. "It is up to Kochi corporation to look into this matter and take adequate steps," he said.

Monday, 7 May 2018

Maharashtra govt reduces lease rent for housing societies and plot owners

Individual plot owners or those whose plot size is less than 5,000 sq ft, as well as housing societies, will now have to pay only 1% of 25% of the plot’s ready reckoner rate (RR rate)

MUMBAI: A section of lease holders of state governmentland can look forward to reduced annual lease rent. The state cabinet on Tuesday decided to cut annual lease rent for individual plot owners, housing societies, social, religious, and cultural organisations and also for orphanages and dharamshalas.

Individual plot owners or those whose plot size is less than 5,000 sq ft, as well as housing societies, will now have to pay only 1% of 25% of the plot’s ready reckoner rate (RR rate). For social, religious and cultural organisations, orphanages and dharamshalas, the annual lease rent has been reduced to only 0.5% of 25% of the plot’s RR rate.

The reduction follows a spate of public interest litigations filed in the Bombay high court after the state government introduced a new lease renewal policy in 2012. It increased the annual lease rent to 2% of 25% of a plot’s RR rates. “This was considered very high, especially since people were paying in hundreds and thousands and under the new policy, it went up to lakhs. It definitely was a huge jump. The court in 2015 directed the government to hold talks with the affected parties and find a middle path,” a senior revenue official said.

Sunday, 29 April 2018

SC stops construction in illegal Delhi colonies

A bench of Justice Madan B. Lokur and Justice Deepak Gupta asked the Centre to set up a Special Task Force for removing encroachments on public land and roads in Delhi

NEW DELHI: The Supreme Court on Tuesday halted all construction in 1,797 unauthorised colonies in the national capital.

A bench of Justice Madan B. Lokur and Justice Deepak Gupta asked the Centre to set up a Special Task Force for removing encroachments on public land and roads in Delhi.

The bench also refused to vacate its stay on proposed amendments to the city's masterplan. The Development Authority had (DDA) appealed the court to vacate the stay.

"On the one hand you have authorised colonies which follow rules and by-laws. On the other hand you have unauthorised colonies which are not following rules and by-laws... Unauthorised colonies can't be placed in a better position than authorised colonies.

"We direct that construction should stop in unauthorised colonies till they follow by-laws," the bench said

The order came after taking into account the submissions of senior advocate Ranjit Kumar, who was assisting the court as amicus curiae, that by-laws do not apply to the illegal colonies and the construction was rampant there.

Sunday, 22 April 2018

Over three lakh houses constructed under PMAY-Gramin in Rajasthan

Under the scheme a grant of Rs 1.2 lakh have been credited to the account of the beneficiaries in three instalments

JAIPUR : Rajasthan has completed over 3 lakh houses under the Pradhan Mantri Awas Yojana (Rural) by April 18 this year. One of the flag ship schemes of the NDA government launched in April 2016 modifying the Indira Aawas Scheme, it intends to provide house to all by 2022. 

Sudarshan Sethi, additional chief secretary panchayati raj and rural development said, "Out of a target of 4.73 lakh houses in the last two years under the scheme, 3,03,000 lakh has been completed and the remaining houses were in the final stages of completion and expected to be completed by June this year."

Sethi said the rural development department has roped in IIT Delhi to design the houses suited to the agro-climatic conditions of the state. Accordingly the state has divided in to four zones, and seven designs were made for the beneficiaries to choose from. The beneficiaries are also free to make their own designs, he said. 

Under the scheme a grant of Rs 1.2 lakh have been credited to the account of the beneficiaries in three instalments. They are eligible for 90 days of manpower (unskilled) under NAREGA (Rs 16,290) apart from an additional grant of Rs 12,000 under Swach Bharat Mission for toilet. Thus the total amount available for the construction of the house is 1,48,290. The size of the house has to be 25 Sq metres including a kitchen. The beneficiaries could avail a loan of up to Rs 70,000 if needed. The construction of the house had to be completed within a year of its approval, he said. 

An important aspect of this scheme is apart from houses, the beneficiaries also eligible for other benefits like LPG connection under Ujjwala scheme, power connection, water connection, solar light system and tanks construction, and group housing facilities like concreate roads, drainage, tree plantation, etc.

Monday, 16 April 2018

Land pooling by Hyderabad development body runs into assigned land hurdle

HMDA, which had carried out the Uppal Bhagat land pooling successfully, is also in the final stage of taking written consent from farmers and land owners in Pratapasingaram

HYDERABAD: The land poolingexercise undertaken by Hyderabad Metropolitan Development Authority(HMDA) at Dundigal and Boduppal (Medipally) has run into hurdles owing to the presence of assigned land, forcing HMDA to seek government's approval. The municipal administration and urban development department has already written to the revenue department, seeking advance possession of the assigned lands to HMDA so that it can go ahead with land pooling. 

HMDA, which had carried out the Uppal Bhagat land pooling successfully, is also in the final stage of taking written consent from farmers and land owners in Pratapasingaram. 

HMDA commissioner T Chiranjeevulu told TOI: "At Medipally, we are looking at 360 acres of land pooling and 520 acres at Dundigal. In both the areas, there are assigned lands. Though assignees have come forward, we have to get the nod of the state government." 

After striking consent agreements with land owners, HMDA is planning to develop roads and other amenities. The ratio of developed land sharing between HMDA and land owners will be based on current market value. Out of one acre of land (4,840 square yards) after roads and amenities are developed, land left for plotting will be 2,800 square yards. 

A senior official of HMDA told TOI, "Assignees cannot transfer or sell the land. Because of this, development has taken a back seat in these areas. So, they have come forward for land pooling with HMDA which will enable them get legal right to sell the plots after their development." It may be recalled the government issued guidelines for land pooling on December 7 last year. 

In Pratapasingaram, HMDA is working on over 160 acres. The commissioner held a meeting with the landowners who gave an oral consent for land pooling. HMDA is also working on land pooling at Bogaram near Keesara where land pooling for 200 acres is on the cards. HMDA has also identified Gourelli in Hayatnagnar mandal and Korremula in Ghatkesar mandal for land pooling.

Monday, 9 April 2018

Existing buildings in ‘red zone’ also need to get NOC from AAI

As per the guidelines of ministry of civil aviation, a suitable mechanism needs to be adopted regarding the already existing structures within the mandatory NOC zone (red colour zone)

PIMPRI CHINCHWAD: The vicic body will regularise all illegal constructions built before December 2015 by April 30, similar constructions under Pimpri Chinchwad New Township Development Authority, will be regularized till May 15.

The urban development department had issued a notification in October last year under the Maharashtra Regional Town Planning Act for regularization of such constructions in residential, commercial and industrial zones. Owners will have to submit complete details of the construction, survey and sector numbers, approved by a licensed architect, to the PCNTDA. However, constructions in buffer zones, red zones, blue lines of rivers, on hill slopes, and dilapidated or structurally unsafe buildings will not be regularised. There are around 40,000 illegal constructions in PCMC limits and around 26,000 constructions under PCNTDA.

PCNTDA engineers will visit the sites and give in principal approval. If the built up area is 10 metres, margin on the sides will be 0.75 metres. A no objection certificate from fire brigade department would be required for buildings which are 36-metre high. For Gaothan areas, the road width would be 4.5 metres, and for other areas, six metres. A structural stability certificate will have to be submitted. Development charges, infrastructure charges and compounding charges will be levied till May 15. Owners in PCMC limits will have to submit Google images of the property along with details of property tax, sewerage tax, and penalty tax on illegal construction till April 30.