Blog

Supreme Court Seeks Response From Unitech After Some Buyers Claim

Supreme Court Seeks Response From Unitech After Some Buyers Claim

June 4, 2018 in Investment News, Real Estate News

Supreme Court Seeks Response From Unitech After Some Buyers Claim They Did Not Get Compensation The Supreme Court on Monday sought the response from real estate major Unitech Ltd on a plea seeking initiation of contempt proceedings against it for alleged non-compliance of its order to compensate some hassled home buyers for delayed delivery of their dream homes. A bench of Chief Justice Dipak Misra and Justices A M Khanwilkar and D Y Chandrachud issued the notice to the real estate firm on a joint contempt petition moved by 13 home buyers who claimed they were yet to receive a compensation of s. 80,000 each as per the directions of the apex court on September 20 last year. The bench was hearing the contempt plea, moved through advocate Brajesh Kumar, by the homebuyers including one Satish Kumar Pandey. The plea claimed that the apex court order directing the firm to pay s. 80,000 each as compensation to 39 home buyers towards litigation cost and causing harassment to them, has not been complied with as yet. However, some of the beneficiaries of the order have been paid this amount, it said. The petitioners said they had personally approached the competent authorities of Unitech Ltd, but they did not pay any heed to the requests. "The respondent has deliberately and willfully disobeyed the order of this court, which is writ apparent from its conduct and, therefore, a clear-cut case for initiation of proceedings for contempt of the order dated September 20, 2017, is made out," it said. The apex court had directed Real Estate firm to pay s. 80,000 each as compensation to 39 home buyers towards litigation cost and causing harassment to them. The court had disposed of the appeal filed by the real estate company against the order of the National Consumer Disputes Redressal Commission (NCDRC) and asked it to pay the cost within eight weeks to the home buyers. The 39 home buyers had booked flats in Unitech's Vista housing project in Gurugram and sought a refund of their principal amount, totalling s. 16.55 crore with interest, after the developer, who had promised to give them possession by 2012, delayed it. The apex court had modified the NCDRC order on the issue of compensation and awarded a compensation of s. 80,000, besides the refund of the money invested by the home buyers who had said that they did not want the flats. Earlier, the firm had told the court that it had complied with the direction on refund of principal and interest to the home buyers of its Gurugram's project. Prior to this, the court had directed the firm to deposit 14 per-cent interest on s. 16.55 crore invested by the 39 buyers and warned it that failure to pay could invite attaching the realtor's property. Over two dozen home buyers of Unitech's housing projects in Noida in Uttar Pradesh and Gurgaon in Haryana had approached the NCDRC after the builder had failed to give them possession of the flats as per schedule. The consumer forum had asked Unitech to refund the money to the home buyers with interest. Sources: www.ndtv.com

GAURS GROUP TO VENTURE INTO HOSPITALITY INDUSTRY

GAURS GROUP TO VENTURE INTO HOSPITALITY INDUSTRY

June 2, 2018 in Gurgaon Investment, Investment News

Real estate major Gaurs Group is aiming to expand its domain in the hospitality industry by the end of this year with an overall investment of approximately ₹ 65 crores. The plan includes three hospitality properties across Ghaziabad and Greater Noida West having a total capacity of over 200 rooms to be developed in three properties. Ghaziabad will see a 40 room property being offered at Gaur Central Mall in RDC with an investment of ₹ 15 crores along with the remaining two properties in Greater Noida West at Gaur City Club and Gaur City Mall with a setup of 70 rooms at ₹ 30 Crores and 100 rooms at ₹ 20 crores respectively. The properties in Greater Noida West are to be launched by this year-end. The properties to be developed would be of different genres and follow the patterns of Business Boutique Resorts offering 4 – Star Luxury. Currently, the group plans to develop a chain of properties which later would be offered a franchise model. Sharing his views on the same, Manoj Gaur, MD, Gaurs Group says, “Regions like Ghaziabad and Greater Noida West lack good hospitality properties. We always have had the knack to deliver quality products at the right place and these three projects would prove to be on the same lines. We are very confident that with this venture into the hospitality industry, we would set new benchmarks for ourselves and the industry together that would be possible through continuous investments in technology and service innovations.” Sources: www.realtyfact.com

RERA has Shrunk the Real Estate Market

RERA has Shrunk the Real Estate Market

May 31, 2018 in Investment News, Real Estate News, RERA Update

There were many apprehensions when the industry embraced RERA in 2017, around its adoption, sincere implementation and effectiveness. And one year down the line, some of these do seem to have grounds. For one, so far only 14 out of the 20 states, which notified RERA, have a functional website and only three states have a permanent regulator. Things do not seem to be as comfortable with consumers either. Recently, we conducted a survey with our consumers asking if they were aware of how to use RERA. A huge 74% of potential homebuyers said they did not know how to check the RERA status of their project. This does point towards a gap existing in the Act’s implementation and consumer seeding. So what have been some of the initial impacts of RERA? The industry was left to chase compliance instead of business for the first six months in 2017 and this took a toll. For a good part of 2017, transactions remained flat and the market shrunk. However, on the other side, RERA has been instrumental in bringing back consumer confidence. In the present scenario, the primary market has shrunk to a size of about 200,000 units per year and the secondary or resale market to about 350,000-400,000 units. Hopefully, with RERA bringing back consumer confidence, we should see the market gradually bounce back to million-plus units a year, which is much needed for a country of our size. The other development is the consolidation that is happening on the developer side. Due to stringent provisions of RERA, non-serious developers are finding it difficult to sustain and will eventually move out. In the top 10 cities, there are around 45,000 developers and one shouldn’t be surprised if the market is ultimately left with fewer than 20,000 developers. This consolidation will not only bring in more professionalism but will also boost consumer confidence as buyers start dealing with organized entities that see a longer stake in the business. While the real implications of the real estate regulator can be gauged only over a period of 2-3 years, the good news is that slowly consumers are becoming aware of protecting their interests and will start using provisions under RERA to ensure that their dream home doesn’t remain just a dream. There are tell-tale signs of this all over. In Karnataka, the RERA Help Desk has received more than 100,000 queries on property-related issues and around 572 projects are under investigation. In Haryana, the RERA authorities have registered over 150 complaints on delay in delivery of possession and buyers seeking the refund. In most cases where home buyers are seeking the refund, they are also demanding interest on the deposit as developers have failed to deliver the projects. In Madhya Pradesh, out of 1,700 RERA-registered projects, cases have been filed against 1,100, and 500 cases have been disposed of till now. Violator developers have been booked in Maharashtra, Bihar, Haryana, Uttar Pradesh and Karnataka. In Maharashtra, conciliation committees of builders and buyers and RERA authorities are trying to sort out problems that can be resolved through conciliation. The fact is that consumer complaints are now being heard and addressed. All these confidence-building measures are improving sentiment and property seekers are coming back to the market after having stayed away for a larger part of 2017. While they may not be transacting much, we have witnessed a significant uptick in property searches. We have seen a 50% rise in searches at this point in time compared to the same period last year. In fact, there were 18% more buyers at the end of March 2018 than at the end of December 2017. It is only a matter of time for more of these searches to translate into sales. India’s real estate market is now finding a balance and current trends indicate that we are witnessing early stages of a turnaround. If 2017 was a muted year for India’s real estate industry, 2018 will likely witness the turnaround that the industry has been expecting for long. And RERA will play a significant role in enabling this. -Sudhir Pai is CEO, Magicbricks Sources: livemint.com

RERA: LAW OF THE LAND?

RERA: LAW OF THE LAND?

May 28, 2018 in Real Estate News, RERA Update

The Central government introduced the Real Estate (Regulation and Development), Act 2016 (RERA) as a model act to govern real estate laws in India. Since real estate is a state subject, all states had the flexibility to re-draw and adopt the same since May 1, 2016, when it was introduced with 60 out of 92 sections. RERA fully came into effect nearly one year ago and was expected to herald a new era of an organised real estate sector in India. While RERA compliance in few markets has brought in a lot of transparency, significant work needs to be done at the ground level to ensure complete adherence across the country. With the exception of Maharashtra, most other states and Union Territories (UTs) have followed a quasi-implementation route. MahaRERA’s proactive implementation of RERA stands out and is setting new precedents every day. Of the total 25,000 projects registered under RERA across India, 62% are in Maharashtra alone. As per the Central RERA act, the process outlining appointment of a Real Estate Regulatory Authority came into force on May 1, 2016. But even after two years, only 3 states (Maharashtra, Madhya Pradesh and Punjab) have established Permanent Real Estate Regulators. Most states have been buying time on getting a Permanent Regulator in place after handing over the reins to such “Interim” authorities. The administrative nonchalance of interim regulators puts a big question mark on the efficacy with which consumer disputes are addressed, ruled and made available to the public at large. Recent rulings by MahaRERA have been successful in restoring buyers’ sentiment in under construction projects. Some of these rulings have been delivered within 30 days of being filed and have created a ripple effect through wide media coverage. Maximum consumer complaints were related to delayed possession of flats and extended delivery timelines of projects on RERA websites. Few complaints were settled in favour of developers as well. Since its constitution, MahaRERA has ruled in over 1000 cases with the first ruling coming in less than six months since its inception. However, a large section of consumers facing grievances over residential properties in India continues to run from pillar to post. Dilution of the Central RERA act by states has delayed the recovery cycle in the residential sector which is undergoing a prolonged slump owing to lack of buyers’ interest in under construction projects. Despite a positive economic outlook, the confidence of buyers is still not back. It is time for the Central government to step in and take non-complaint states to the task. The state governments had ample time to draft their own real estate laws per the ground realities and their liability should not end with setting up interim authorities. The Central RERA should also have its own portal for regular updates on RERA implementation by states. It will go a long way in removing ambiguity about the extent of RERA compliance in each state. Given the impactful stature of the MahaRERA, the new eco-system hence created has taken care of most problems from the consumers’ perspective and made the process transparent. Other states struggling to implement RERA should learn from Maharashtra’s successful strategy to bring the buyers back to under construction projects. Sources:.knightfrank

Switch to Solar

Switch to Solar

May 26, 2018 in Investment News, Real Estate News

There is general consensus today that we need to harvest solar potential to produce most, if not all the energy we need. Solar technology has evolved and is now available at a reasonable cost and market growth has ensured a variety of solar panel variants, manufacturers and dealers, giving people plenty to choose from. As architects, it’s time we think of making renewable energy an integral part of our designs and not let it be just an appendage to the built-form. This is termed BIPV — Building Integrated Photovoltaics. Staying informed about the latest advancements in renewable energy technology will help with its integration in the planning stage. The advantage of BIPV over conventional systems is that the initial cost can be offset by reducing construction costs of the particular area that the BIPV modules replace. Also, as our buildings get taller, the ratio of available roof area for a conventional solar panel installation versus the number of occupants is slowly reducing, making it difficult to produce the amount of energy required per occupant locally. One way to increase solar energy production is by means of replacing architectural elements with solar panels. BIPV can be installed on building façades in addition to the roof. Unlike the traditional solar modules, BIPV modules can generate power by both direct and diffused radiation. As solar panels are glass-based, components that contain glazings such as windows, skylights, glass façades, roofing sheets, tiles and doors can easily be planned to be energy-producing solar panels. In addition to producing electricity, these can enhance energy savings due to superior thermal insulation properties and solar radiation control. The various technologies currently available include crystalline silicon solar panels, amorphous-crystalline silicon thin film solar PV modules which could be coloured or transparent, CIGS-based (Copper Indium Gallium Selenide) thin film cells, double glass solar panels with square cells inside and solar roof tiles with integrated solar modules. Currently, adoption of BIPV in India has been extremely slow when compared to other countries. If architects and planners are able to think holistically and support such initiatives, India can go a long way in getting to self-sufficiency in terms of its energy needs. The author is the founder of Green Evolution, a city-based sustainable architecture firm Sources: thehindu

Adani Group makes investment of Rs 500 crore in lending arm

Adani Group makes investment of Rs 500 crore in lending arm

May 23, 2018 in Adani Group, Investment News, Real Estate News

Adani Group has committed initial capital of Rs 500 crore to its lending arm Adani Capital. The Gujarat-based conglomerate is looking to expand financial services business at a time when burgeoning bad loans have made state-run banks picky in bankrolling projects. Privately funded by the promoter group, the company has started full-fledged operations with 200 employees in 19 branches spread across Gujarat and Maharashtra. These branches are in rural and semi-urban locations such as Himmatnagar, Mehsana, Kolhapur and Nashik. “Our aim is to provide customised solutions to entrepreneurs, be it a farmer or a small businessman, by leveraging technology,” Gaurav Gupta, chief executive at Adani Capital, told ET. “Entrepreneurs are the backbone of the economic growth and they are our target customers markets. We find a void in the existing scheme of things, which would be a customised solution for entrepreneurs.” Adani Capital aims to finance Rs 1 lakh to Rs 50 crore across the farm, commercial vehicle and business loan segments. It has also launched an all-digital channel finance product with over 100 live customers. Adani Group’s move is in line with many other conglomerates such as the Aditya Birla Group, Bajaj, L&T, Piramal Group and Reliance Group. Many others like Kotak and Piramal also joined hands with large institutional investors like Canada Pension Plan Investment Board for rolling out various products NBFCs are better placed in rural and semi-urban regions in terms of lending business, Investec Securities said in a note on April 17. “Our channel checks suggest banks continue to rely on direct sale agents or dealers to source business in semi-urban/rural areas, with DSAs typically helping banks in resolving collection issues,” the note said. “NBFCs, though, have a strong reach in semi-urban and rural regions which helps them connect better with customers. Sources: economictimes.indiatimes.com

11-26% Rental Growth In Office Markets : Report

11-26% Rental Growth In Office Markets : Report

May 21, 2018 in Investment News, Real Estate News

The demand for office space has risen 23% in the first quarter of 2018, compared with the same period last year, with pan India absorption recording 11.4 million sq ft of commercial space. With the intensifying office demand, the rental values also have increased in several active micro-markets across India. Of the top 10 micro-markets that witnessed highest on-year growth in rentals, six were in Bangalore with 11-26% rise, showed a Colliers International report. Limited availability of Grade A office space in preferred micro markets has primarily led to the rental rise in select micro-markets of Delhi NCR, Kolkata and Hyderabad as well. "The commercial real estate market is likely to remain robust with increased investor activity, sustained demand from technology companies and growing interest from various industry occupiers like manufacturing, flexible workspace, logistics and warehousing. The demand will be well supported by Grade A new office supply of about 117.0 million sq ft, which is scheduled for completion over 2018-2020," said Ritesh Sachdev, Senior Executive Director, Occupier Services at Colliers International India. Bengaluru's Bannerghatta Road topped the list with 26% on-year rise in rentals, Central Business District followed with 25% growth, while Electronic City and Secondary Business District including Indiranagar and Koramangala saw rentals appreciating 17.6% and 14.3%, respectively. Kolkata's Sector V micro-market recorded a 14% on-year escalation in rents during the period. Bengaluru's Outer Ring Road witnessed 12.7% rise and Whitefield micro-market witnessed an increase of 11.1%. Connaught Place, the Central Business District area of Delhi NCR, witnessed an annual rental increase of 10.8%, while rentals in Delhi Aerocity rose 10.8%, the report said. Sources: economictimes.indiatimes.com

Godrej Properties cuts net debt by 19% in FY18 to Rs 2,846 crore

Godrej Properties cuts net debt by 19% in FY18 to Rs 2,846 crore

May 19, 2018 in Godrej News, Investment News

Realty firm Godrej PropertiesNSE -2.65 % has cut its net debt by around Rs 650 crore during last fiscal on the back of strong sales bookings and also brought down average borrowing cost by one percentage point. According to an investors presentation, the net debt of Mumbai-based real estate developer has come down to Rs 2,846 crore as on March 31, 2018, from Rs 3,499 at the start of the last fiscal. The average borrowing cost stood at 7.8 percent as on March 31, 2018, as against 8.8 percent at the end of 2016-17. The net debt-equity ratio has also reduced to 1.27 from 1.75 during the period under review. Godrej Properties' sales bookings jumped over two-fold to Rs 5,083 crore during 2017-18 from Rs 2,020 crore in the previous fiscal. Godrej Properties said the 2017-18 fiscal was the best year for business development. "Added 12 new projects with saleable area of 23.5 million sq ft in FY18. About 83 percent of the area added in FY18 is in partnership with other developers. 100 percent of new projects in the 4 largest real estate markets," the presentation said. The company is raising Rs 1,000 crore through preferential issue of shares to a Singapore-based GIC-managed investment company. The fund will be utilised for business development and acquisition of new projects. Godrej Properties, a real estate arm of the Godrej group, clocked over two-fold jump in its consolidated net profit to Rs 141.51 crore for the January-March quarter (Q4) of last fiscal as against Rs 62.59 crore in the year-ago period. The total income also rose sharply by 84 percent to Rs 848.56 crore from in the fourth quarter of the last fiscal from Rs 462.25 crore in the corresponding period of the previous year. During the entire 2017-18 fiscal, the net profit increased by 14 percent to Rs 234.96 crore from Rs 206.8 crore in 2016-17. Total income increased by 41 percent to Rs 2,390.67 crore in 2017-18 compared to Rs 1,701.38 crore. Godrej Properties is developing residential, commercial and township projects spread across about 151 million square feet in 12 cities. It has the major presence in Delhi-NCR, Mumbai, Bengaluru and Pune. Sources: economictimes.indiatimes.com

Commercial Office Space May Rise 20% To Over 600 M Sq.ft. This Year

Commercial Office Space May Rise 20% To Over 600 M Sq.ft. This Year

May 18, 2018 in Uncategorized

Commercial office stock in India is expected to cross 600 million square feet by the end of 2018, which is a 20 percent jump in two years, as per the India report on ‘asia pacific real estate market outlook 2018’ shared by CBRE, a real estate consulting firm. It has also predicted that over the next two years, occupiers are expected to spend almost $48 million on leasing office space in India while new commercial assets worth approximately $6 billion would be completed. The report, which is a part of a global research series, is released by CBRE every year, highlighting trends and dynamics across various segments in the real estate sector for the year ahead. Commercial office stock includes the total area available for office space in India. Market dynamics On the housing market in 2018, the report says that demand would be driven by ready-to-move-in properties. Also, affordable housing is likely to play a crucial role in the country’s residential market this year. Another finding predicts that leasing activity in the industrial and warehousing segment is expected to touch 20 million square feet in 2018, up 17 percent from 2017. “we expect 2018 to be the turnaround year for the real estate ecosystem in India. Significant infrastructure development across key cities, improvement in ease of doing business, the renewed focus on attracting investments in the sector and enhanced transparency is changing the market dynamics. As the significant contributor to India's GDP, there is an immense opportunity for the real estate sector to influence the growth prospects of the country”, said Anshuman Magazine, chairman, India and south-east Asia, CBRE. This year, the firm expects capital inflows into real estate to witness an uptick, with office, retail, industrial and land parcels leading the activity. Sources: www.thehindubusinessline.com

CBI visits DTCP office over land scam

CBI visits DTCP office over land scam

May 14, 2018 in Gurgaon Investment, Investment

A four-member CBI team visited the DTCP office in Sector 14 on Wednesday and collected ‘documentary evidence’ in connection with a 1,400-acre land scam that had affected hundreds of villagers in sectors 58-66. Though CBI and DTCP officials refused to divulge any detail, sources said the investigating team came around 10 am and spent around four hours scanning files in the DTCP’s planning wing. They further said the team gathered evidence against three builders who were allegedly favoured during the land allotment in 2009, and officials who had issued notices for land acquisition. Also, the sleuths collected attendance registers of the period between 2008 and 2012 for all the staff, including junior engineers, additional district planner and district town planner, who was posted in Gurugram then. The agency officials also gathered documents regarding licences granted during the period in those sectors. The alleged scam dates back to 2009 when the Bhupinder Singh Hooda government had issued notification for acquiring around 1,400 acres in eight villages around Gurugram for developing sectors 58 to 66. The eight villages are Nangli Umarpur, Tigra, Ulhawas, Kadarpur, Medawas, Badshapur, Behrampur and Ghatta. However, a year after the notification, the Haryana government had released around 95% of the acquired land to private builders and even granted licences to some developers for building housing projects. In January 2014, the Punjab and Haryana high court had quashed the 2009 notification, dealing a blow to the government as well as the city’s realty sector. Though the Haryana government had contended that 87 acres of land was acquired to construct schools, hospitals, community centres and other utility buildings, the high court had observed the builders were given land and it was their duty, and not of the state government, to provide for these civic amenities. In November 2017, a bench of justices Arun Mishra and Mohan M Shantanagoudar directed the CBI to probe the matter and submit a report before the court in six months i.e. by May 2. However, the CBI may ask for more time to complete the investigation in the matter as the agency is still in the process of gathering evidence. Sources: realty.economictimes.com

© Copyright 2017
CS LandTraders India Pvt. Ltd Design by Hostcrux

Quick Contact

Your Name (required)

Your Mobile (required)

Your Email (required)

Your Message


Hot Deals

>> <
  • 68 avenue
  • Baani Center Point
  • JMS Crosswalk

Micro Sites