CREDAI seeks government intervention to set up RERA tribunals

CREDAI further highlighted the necessity for the setting up of the tribunal to decrease the need and participation of the higher courts to facilitate matters between different parties

MUMBAI: Realty developers’ body Confederation of Real Estate Developers' Associations of India (CREDAI), through a letter to Hardeep Singh Puri, Minister for Housing and Urban Affairs, has sought the government’s intervention for setting up tribunals in all states across the country.

In the letter, CREDAI has underlined the disparity between states with regards to the implementation of the act with regions such as Maharashtra, albeit still lacking a tribunal, setting the benchmark while many states namely West Bengal still struggling with the process, CREDAI said in a release.

“We at CREDAI have extended our complete support in the implementation of the Real Estate Regulation and Development Act (RERA). However, to be able to further fulfil the purpose of the act, it is imperative that appropriate guidelines be established for the concerned authorities to set up the Real Estate Appellate Tribunal at the earliest,” said Jaxay Shah, President, CREDAI National.

CREDAI further highlighted the necessity for the setting up of the tribunal to decrease the need and participation of the higher courts to facilitate matters between different parties. Over 235 judgements have been delivered by the MahaRERA authority till date. Many of these cases are expected to reach the high court for a resolution which only goes to show the dire need of the mechanism of a RERA tribunal, the release said.

Credit : https://realty.economictimes.indiatimes.com

Maharashtra govt officials to speed up realty projects

According to a circular, officials concerned will issue orders for commencement of building in less than 30 days, plinth certificates in seven days, occupation certificates in eight days, tree-felling permission in 45 days.

PUNE: State government officials will be held accountable for not clearing approvals of construction projects within the stipulated time frame.

The state urban development department (UDD), in a circular issued last week under the Right to Services Act for ease of doing business in the state, has the made government officials accountable for issuing approvals for construction projects as per the timeline set by the department in August circular.

According to the circular, officials concerned will issue orders for commencement of building in less than 30 days, plinth certificates in seven days, occupation certificates in eight days, tree-felling permission in 45 days. Permission for tree felling is issued under section 8 (4) of Maharashtra (urban areas) Protection and Preservation of Trees Act. Earlier, there was no deadline for issuing permission.

The UDD is one of the last remaining departments to set deadlines and designate officers responsible for meeting them under the Maharashtra Right to Public Services Act, 2015. Similar directives were issued under the Central government’s ease of doing business initiative, but state government officers were not held guilty for missing deadlines.

With the UDD issuing new rules to hasten approvals for construction, the realty sector is all set to benefit as earlier there was no time line for approvals. "It is a good initiative. But there is also a fear that officials might find small faults and delay the process,” stated Maharashtra CREDAI president Shantilal Kataria.

Consumer forums have been up in arms against developers for not meeting deadlines. Recently, a Pune-based consumer forum had even pointed out that while consumers had raised the issue with the Maharashtra Real Estate Regulatory Authority, it was issuing fresh deadlines.

However, CREDAI president Kataria said that the existing projects, which were stuck at various levels, will gain momentum due to these rules .

Credit : https://realty.economictimes.indiatimes.com/

Five Powerful Tips for Realtors to plan their Digital Strategy for 2018

Dear Realtors, 2018 is knocking at our doors and while most us are making plans for exciting New Year parties and shopping sprees, it wouldn’t be a bad idea to give shape to the upcoming year’s business plan too.

How about reviewing last year’s strategy and evaluating what worked for you and what didn’t?

Is there any business challenge that you could have managed in a better way?

Eliminate the fluff and trim some excess weight your business has put on and welcome the New Year in a brand new avatar. The real estate industry is turning over a new leaf and your buyers and sellers are getting increasingly dependent on digital information and seamless transactions. That’s why it should be your priority to enhance your presence in the digital world and implement processes accordingly.

The following tips are worthy of a look and will assure you of a robust digital strategy in 2018:

1.    Focus on Personal branding this year: It is time to use the entire goodwill that your business has created over the past year and utilize it to create a personal brand. Pushing the value of your organization in the digital world will ensure that your business receives more eyeballs than ever before. Connect to a professional digital marketing firm and focus on improving public relations that will give your business the necessary impetus right at the beginning of the year.

2.     Revitalise your website: Modern day clients are known to visit a business website first and then call to discuss details. Since digital is the way to go, ensure that your first impression is as impressive and impactful as possible. Check your website now and infuse it with some new energy by altering its design and content so that your clients can relate to it easily. Check if navigation is simple and provides all the necessary information without much fuss. Most clients access information on their mobile phones and tablets to make sure the website is mobile-friendly too.

3.    Create a blog: There is no better way than creating a niche blog to get people talking about you and noticing your business in the digital world. People are on constant lookout for quality information and if it is relevant to their needs and updated, you are assured of a continuous flow of visitors (read potential customers). Push your blog and its content on social media and build a loyal following that will grow steadily as time goes by. As a Realtor, your blog can be very effective you in branding you as the Local Specialist and the go to guy.... think about it. 

4. Communication is the key: If you want to share your story and ideas with the right type of audience, there is no better way than the digital way. Build a sense of anticipation around your story and personalize it as much as possible to suit your audience’s needs. Use CRM platforms or email marketing campaigns to ensure consistent communication with your potential customers. Draw up a budget and arrive at the most cost-effective ways of reaching out using multiple delivery points. Facebook, Twitter, Blogs and emails can form a great mix of communication with existing and potential customers.

5. It’s the time for Video: The visual medium has proved to be more effective than the written or spoken word and your business too could benefit if it is used in the right manner. Promote your business and attract a larger volume of clients by creating a short bio about yourself from a professional agency. It would also help if you could get a few of your clients to talk about you and your work. Share your latest success in the form of a video and create a dramatic impact on your viewers.

Explore the above tips with an open mind and bring in some dramatic changes to the way the world looks at your real estate business. The real estate industry is going through a metamorphosis and it’s definitely time your digital strategy is geared up to handle this change.

Create your BluePrint for Success in 2018 by using the digital medium and increase your market share by leaps and bounds. And don't forget to invest the requisite capital to do this...... Wishing you a bountiful 2018.

Credit : Ramprasad Padhi 

Maharashtra to pay 5 times for agricultural & non-rural land

The decision would help in acquisition of land for big ticket infra projects like the Rs 46,000-crore Mumbai-Nagpur super expressway and other projects in the state

MUMBAI: In a decision that is likely to speed up acquisition of land for infrastructure projects in Maharashtra, the state government has cleared a move that would see agricultural land and land in no-development zones (NDZs) in non-rural areas fetch five times the market value.

The file was cleared by chief minister Devendra Fadnavissome days ago. The decision would help in acquisition of land for big ticket infrastructure projects such as the Rs 46,000-crore Mumbai-Nagpur super expressway and other projects in the state.

Government officials said the file suggesting a hike in compensation was put up by Maharashtra State Road Development Corporation as people in non-rural areas were demanding the same amount of compensation (five times) that the state currently gives for acquiring land in rural areas.

However, in places such as Nagpur and metropolitan region Kalyan and other areas which have a development plan but are not under any municipal limit, the current compensation for land is only 3.75 times of the ready reckoner rate or rate of the last purchase, whichever is higher.

“This led to a difficulty in acquiring land for projects such as the Nagpur-Mumbai expressway as those who owned the land asked why the government was paying them less than what people in rural areas get. We studied the demand and found that it made sense and hence we have decided to implement it,” said a government official.

The state government gives a compensation five times of the land value to those who willingly (negotiated purchase) hand over their land to the state.

However, the increased compensation will not be applicable for land within municipal council and municipal corporation limits. “This will not be applicable here, as the ready reckoner rate in municipal limits is already very high,” said the official.

Officials hope that the new move by the state government would give a fresh impetus to land acquisition for the Mumbai-Nagpur expressway project.

The state wants to acquire 10,000 hectares of land for the project but has struggled to secure consent of landowners on the route. It wanted to start construction on the route by December. However, it has now pushed the deadline to January 2018 as land acquisition is still not complete.

Credit : https://realty.economictimes.indiatimes.com/

RERA helps Haryana mop up Rs 1,170 crore as EDC from realtors

HRERA cannot directly claim EDC but it is issuing letters to developers through the department of town and country, saying registrations won’t happen unless EDC dues were cleared.

GURUGRAM: The interim Haryana Real Estate Regulatory Authority (H-Rera) has recovered Rs 1,170 crore in external development charges(EDC) from developers across the state in just three months, from August to October this year.

According to officials, the amount has been recovered from developers who had not paid the mandatory EDC for their real estate projects in the state but had to do so to get their new projects registered under the new real estate law.

HRERA cannot directly claim EDC but it is issuing letters to developers through the department of town and country, saying registrations won’t happen unless EDC dues were cleared.

Dilbagh Singh Sihag, executive director of the interim H-Rera, said the EDC collection was a major achievement for the newly formed body and might cross the Rs 2,000 crore-mark as more registrations happen under the new law. He, however, did not specify the number of developers from whom the charges have been recovered.

EDC is collected by the government for infrastructure development.

The interim H-Rera was instituted in July and the state government has promised to appoint the permanent body by the end of the year. “Even though the permanent H-Rera is under formation, we have been working full time and issuing notices to all erring developers over EDC and for not registering their projects under H-Rera or advertising projects without registration under the act,” Sihag said, adding the H-Rera website would be ready in another two months.

Sources from the industry confirmed the government had been issuing letters repeatedly to developers, asking them to pay EDC. State finance minister Capt Abhimanyu Singh had said at an event earlier this year that developers owed the government Rs 17,000 crore in EDC, in Gurgaon and Faridabad alone. Chief minister Manohar Lal Khattar on a recent visit to Pataudi had also asked developers to clear their dues.

Opposition leader Abhay Singh Chautala had recently written to Khattar, asking him to not appoint retired bureaucrats who were connected to “controversial” land deals in the state in HRera. Following this, a retired Haryana Civil Services officer had filed a petition in the Punjab and Haryana high court, alleging that the appointment criteria was tailormade to suit a few officers. All this has delayed the setting up of the permanent HRera and it remains to be seen if it gets done by the end of this year.

Realtors owe the state government Rs 18,563 crore in the form of EDC. Of this, the realization of Rs 4,322 crore is under doubt because of legal challenges.

Credit : https://realty.economictimes.indiatimes.com/

Over 1000 new FPIs registered with SEBI

Over 1,000 fresh foreign investors were registered with Sebi in April-September 2017-18, primarily due to their continued interest in the Indian capital markets, latest data from the regulator showed.

This comes on top of close to 3,500 new foreign portfolio investors (FPIs) registering with Sebi in the past financial year.

According to Sebi data, the number of FPIs with the regulators approval increased to 8,826 at the end of September 2017, from 7,807 at March-end, resulting in an addition of 1,019.

“The reason for increasing FPI registrations is continued interest in the Indian equity, bonds and real estate,” said Arvind Chari, head, fixed income and alternatives, Quantum Advisors.

“Besides, the end of the earlier FII/sub-accounts regime, which ended in September 2016, necessitated all such entries to register as FPI,” he added.

Further, market experts are of the view that several measures taken by the Sebi added to Indias attractiveness.

Also, foreign investors have pumped in more than Rs 95,500 crore into the Indian capital markets – equity and debt – during the period under review.

In June, the board of Securities and Exchange Board of India (Sebi) decided to ease the entry norms for overseas investors by permitting direct access to FPIs from eligible jurisdictions.

Recently, Sebi raised FPIs investment limit for government debt, permitted them to invest in unlisted corporate debt as well as securitised debt instruments and allowed direct entry to well-regulated foreign investors to invest in corporate bonds.

In a big revamp, Sebi in 2014 released norms that clubbed different categories of foreign investors into a new class called FPIs. They have been divided into three categories as per their risk profile and KYC (know your customer) requirements while other registration procedures have been made simpler.

Credit : http://realtyplusmag.com/

North Mumbai to be the next place for realty growth

Owing to massive infrastructure push by the state government towards easing commuting in western and eastern corridors of the megapolis, northern region will continue to be at the epicentre of real estate activities in future.

“North Mumbai has been very active on real estate and infrastructure front off late. Connectivity with this region has improved substantially due to the various projects undertaken by the government,” Jone Lang LaSalle Head Research and REIS Ashutosh Limaye said.

The north Mumbai region spans from Bandra to Dahisar, from Kurla (Chunabhatti) to Mulund and from Kurla up to Trombay Creek.

According to JLL, north Mumbai has about 15 million sqft (square feet) of Grade A office space and more companies are choosing to move to this area.

“North Mumbai is unlocking its potential to new scale and will continue to be at the epicentre of the real estate and infrastructure activities in future as well,” he said.

According to JP Infra Chief Operating Officer Ajay Nair, the infrastructure projects undertaken in this region will result in increased residential and high quality social infrastructure developments in all the new micro markets here.

Coastal road, Mumbai Trans Harbour Link, Mulund Goregaon link road, Colaba-Seepz, Dahisar to DN Nagar and Dahisar east to Andheri metro corridors and elevated roads are some of the major projects the government has undertaken to improve the east-west connectivity.

“Infra push has resulted in real estate boom in northern Mumbai offering amenitised products even in lower ticket bracket from branded developers for work-life balance and luxury living,” Omkar Realtors Director Devang Varma said.

Ravi Group Director Gaurav Shah said that from the perspective of investment in residential in south Mumbai is very capital intensive and therefore the northern region is becoming as a preferred investment destination.

He further said, south Mumbai is continuing to face a space crunch and non-availability of smaller tickets size apartments and, therefore, the micro markets like Goregaon, Malad, Kandivali, Mira Road, Powai, Vikhroli, BKC East, Ghatkopar and others are witnessing an emergence of budget homes offered by varied developers like JP Infra, Sai Developers, Lodha Builders, Ravi Group of Companies with options ranging from 1, 1.5 and 2 BHK apartments in the price bracket of Rs 40-70 lakh.

Credit : http://realtyplusmag.com/