Real Estate News

Withdraw OCS Or CCS Given To Incomplete Projects

Withdraw OCS Or CCS Given To Incomplete Projects

January 15, 2019 in Gurgaon Investment, Investment News, Real Estate News

As part of a landmark judgment, the Haryana Real Estate Regulatory Authority – Gurugram bench has asked the Town and Country Planning Department (DTCP), Haryana, to withdraw the Completion Certificate (CC), or Occupation Certificate (OC), issued to projects that are yet to complete the development.

The authority has also asked DTCP to initiate an inquiry as to how such certificates have been procured fraudulently.

The development is expected to have ramifications across other states and regions too as several developers had rushed to secure these completion and occupation certificates ahead of the commencement of RERA in a bid to escape its jurisdiction.

It has observed many such cases where part CC, or OC, has already been issued even though the development work is not yet complete, which should be the criteria for granting these approvals.

“A fraud has been committed to secure these OCs and CCs even though the projects are yet to be completed. We have issued show-cause notices to such builders and are reaching out to vigilance for an enquiry into the matter,” KK Khandelwal, chairman, Haryana Real Estate Regulatory Authority, told ET.

The regulator has also asked DTCP to take disciplinary action against officers whose connivance builders have secured such clearances.

The authority has provided a month’s time to promoters of such projects to apply for registration, failing which penal proceedings will be initiated against them.

According to experts, the authority has taken cognizance of the trouble faced by homebuyers of such incomplete projects and builders procuring OC/CC even without completing the projects.

“This order would have wider implications benefitting homebuyers, especially since many states have diluted their real estate rules that favour builders. Such developers will be forced to comply with the registration requirement or face penalty up to 10% of the project cost as provided under the RERA,” said Abhay Upadhyay, president of pan-India homebuyers’ body Forum for People’s Collective Efforts (FPCE).

According to RERA, the development scope of the project includes external work such as roads, landscaping, water supply, sewerage and drainage, electricity supply transformer, sub-station, solid-waste management and any other work as may be provided in local laws.

Internal development work means roads, footpaths, water supply, parks, tree planting, street lighting, provision for community buildings, water conservation, energy management, fire protection and safety requirements, social infrastructure such as educational, health and other public amenities as per sanctioned plans.

Upadhyay reckons that in many cases homebuyers face problems because they are being forced to take possession without the promised infrastructure in place. The CC, or OC, can only be granted after the completion of such development work as observed by the authority.

The authority has also ruled that mere applying for Completion Certificate, or Occupation Certificate, will not exempt any real estate project from falling under the ambit of the Real Estate (Regulation & Development) Act, 2016 (RERA).

It has made it clear that the OC, or CC, granted prior to the commencement of the act will be the only condition to get an exemption from RERA registration of the project.

“…mere filing of the application cannot be treated as completion of the project/occupation of the project,” the order said.

However, it has further stated that homebuyers of these exempted projects can still approach the authority for any structural defect in the project within five years of filing the complaint. The authority has also ruled that all real estate projects will be covered for land title defect liability.

Sources: realty.economictimes.indiatimes.com

Wework Plans To Double Co-Working Space In 2019

Wework Plans To Double Co-Working Space In 2019

January 10, 2019 in Gurgaon Investment, Real Estate News, WeWork

New York-headquartered collaborative workspace firm WeWork’s India arm plans to double the co-working space it offers in the country to 6 million square feet in 2019 and expand its presence to cities including Chennai, Pune and Hyderabad by the end of next year.

The company currently operates 3 million sq.ft. office space across Bengaluru, Mumbai and Gurgaon.

“In India, WeWork started the year with over 5,000 desks and is closing it with 35,000 desks across 21 locations. With a member base of 20,000 in India, we are selling 2,000 desks a month,” said Karan Virwani Karan, chief WeWork executive officer, WeWork India.

The company had entered India in late 2016 through a joint venture with Bengaluru-based real estate developer Embassy Group. It started operations in July 2017, with its first co-working office space at Embassy’s Residency Road building in Bengaluru spread over 400,000 sq.ft.

According to Virwani, WeWork India contributed 10% of the total members to its global business this year and is averaging occupancy of over 95% for buildings open longer than six months.

“We have grown exceptionally in the last one year and there is a lot more attention on the Indian market. Sales growth in India and China has been extremely well for WeWork,” said Virwani.

In 2018, the company has added 18 locations across the National Capital Region, Mumbai and Bengaluru. “Globally enterprise members are 30%, and in India, it is 52%,” said Virwani.

Separately, it plans to expand WeWork Labs in 10 locations across six cities in 2019. WeWork Labs offers dedicated space, services and community that supports more than 1,000 startups in 33 locations in 17 cities across 10 countries.

Globally, WeWork is the largest private occupier of office space in Manhattan, London and Washington, D.C. with 400,000 members in 26 countries across 400 locations. In 2018, WeWork expanded to eight new countries, 34 new cities and 200 new locations.

According to a recent study by real estate services firm JLL, apart from Mumbai, Bengaluru and Delhi-NCR saw a threefold growth in their share in demand for shared office space in the country. It said that the absorption of shared office space had more than tripled to 3.44 million sq.ft. at the end of September from 1.11 million sq ft a year ago.

Sources: realty.economictimes.indiatimes.com

L&T Starts Work On Gurugram Stretch Of Dwarka Expressway

L&T Starts Work On Gurugram Stretch Of Dwarka Expressway

January 5, 2019 in Dwarka Expressway, Real Estate News

Infrastructure major Larsen & Toubro has started work on the Gurugram portion of Dwarka Expressway (nearly 20km).

Recently, company workers carried out soil testing of the entire stretch and are now establishing temporary structures, which will aid them during construction.

The company has taken up packages 3 (Haryana border to Basai railway overbridge) and 4 (Basai railway overbridge to CPR/SPR/NH-8 junction). The Dwarka Expressway project has been divided into four packages, two of which lie in Delhi.

A senior official from L&T said: “Not a single day has been lost since we were awarded the project. We have mobilised nearly 400 of our own workers and 300 others through a sub-contractor to work on the 20-km stretch. Now, we have around 700 people working on the ground.”

NHAI awarded the project to L&T in the first week of December and gave them 24 months to complete work. The L&T official added, “We understand the significance of this expressway. We have done our groundwork for the past one month, established our site office, and started on the final drawing of the project which will most likely be completed by the end of this month. However, there might be a few changes from our initial drawings to how we finally execute the project. Besides the designing part, soil testing has been carried out to ensure the safe installation of pillars.”

The stretch will be almost entirely elevated and there will be two exit points at Babarpur and Pataudi Road, according to sources.

In the next few days, the company will carry out the piling work (making the floor for installing pillars of the elevated road) near the railway overbridge, on Basai Road and at Bajghera. TOI spotted a few workers making a track for cranes at the L&T site near the railway overbridge.

The cranes will carry the huge concrete slabs, which will be used for the construction of the elevated road. Other than this, a construction material mixing plant has also been set up at the same site.

While most of the stretch will be elevated, a few portions will be on ground level. “The elevated stretch will be made of concrete while the portions on ground level will be black,” added the L&T official.

NHAI has also planned underpasses for safe passage of vehicles at traffic crossings under the elevated road and L&T will construct the same. Package 3 is being made at a cost of Rs 1,334 crore and package 4 with Rs 1,046 crore.

Haryana Shahari Vikas Pradhikaran (HSVP), earlier known as Huda, is yet to transfer a 1-km stretch near Kherki Daula village to NHAI but the highways authority has otherwise completed land acquisition for the project.

Meanwhile, the Delhi portion of the expressway is stuck over forest clearance.

Sources: realty.economictimes.indiatimes.com

Haryana Government Tweaks Licensing Norms, Now Builders Can Buy Extra FAR

Haryana Government Tweaks Licensing Norms, Now Builders Can Buy Extra FAR

January 3, 2019 in Haryana Government, Real Estate News

In a step that would give leverage to the realty sector in Haryana, the department of town and country planning has amended the new integrated licensing policy, 2016, allowing developers to buy extra floor area ratio (FAR) in the existing plot and add more flats to their high-rises.

According to authorities, the extra purchasable FAR of 0.25, in addition to 1.25 which is already allotted, will help realtors build more affordable homes in cities like Gurgaon.

Floor area ratio (FAR) is the ratio of a building’s total floor area (gross floor area) to the size of the piece of land upon which it is built.

At the same time, the state government is keeping a check on the population density of group housing societies by retaining it at 300 people per acre (PPA). It was raised to 300 from 250 in May 2011.

This is the third major change made to the licensing policy introduced in the state since the new government took over in October 2014. The Khattar-led government has issued 231 new licences across the state during its tenure.

The amendments were announced on Wednesday by the DTCP. This will also be relevant in cases of old societies, where owners can engage a builder, who would rebuild their flats and construct a few extra units to recover the costs and make profits.
The extra FAR though will be calculated at 88% of the licenced area, while the remaining 12% will be reserved for housing for economically weaker sections (EWS) as per conditions of the licence.

The fee and charges, including licence fee, conversion charges and external development charges of the residential component will be paid at five-sevenths (5/7th) of the rates notified for that group housing society.

AK Singh, principal secretary (town and country planning) in the order stated that any required amendments would be done in Haryana Development and Regulation of Urban Areas Rules, 1976 and the Punjab Scheduled Roads and Controlled Areas Restriction of Unregulated Development Rules, 1965.

Manesar land scam: Government fails to verify claims, buyers move SC

Manesar land scam: Government fails to verify claims, buyers move SC

January 1, 2019 in Manesar Land Scam, Real Estate News

The ABW Manesar Allottee Welfare Society, Gurugram on Saturday, filed a contempt petition against the state of Haryana and its agency, Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) in the Supreme Court for failing to comply with its earlier order, delivered on March 12, 2018, in the Manesar land case.

As per the March 12 order, HSIIDC was to verify claims of all homebuyers who had bought properties in projects developed on the land affected by the scam, within two months from the judgement date. However, HSIIDC is yet to complete the process. “Instead, HSIIDC is still juggling with a process, and have issued a fresh diktat to buyers to file documents which they have already submitted in April 2018,” said Naresh Jindal, president, ABW Manesar Allotee Welfare Society.

Sameer Chaddha, another homebuyer, said HSIIDC appears clueless, and while claims of buyers in other projects on the same land are being processed, ABW buyers are suffering. “It has been six months since the judgement and HSIIDC are asking for the same documents we have already delivered months back. There is absolutely no clarity on the status of claims or the project. It’s almost a decade since we bought our homes, and we’re still clueless about the future,” said Chaddha, who works as a senior manager at Maruti.

HSIIDC officials said they are planning to file an application with the Supreme Court for extension of a deadline for verification of homebuyer claims. “The time allotted to us by the SC was not enough to complete the verification process. Hence, we will seek an extension from the honourable court,” said a senior HSIIDC official.

He added that meanwhile, individual claims of homebuyers are being verified through an external auditor.

Sources: realty.economictimes.indiatimes.com

OYO appoints Rohit Kapoor as head of its New Real Estate Business

OYO appoints Rohit Kapoor as head of its New Real Estate Business

December 29, 2018 in Investment News, Real Estate News

Hospitality chain OYO Hotels & Homes has named former Max Healthcare senior executive Rohit Kapoor as the head of its new real estate business, the Gurgaon-headquartered company announced on Tuesday.

The appointment, effective December 6, will see Kapoor spearhead new real estate business opportunities for the company, which will include exploring new domains and categories, and other strategic initiatives, according to an official statement.
“While we continue to grow our hospitality business, new real estate initiatives such as this will play a key role in driving the next wave of growth at OYO,” Ritesh Agarwal, OYO Group Chief Executive, stated in the company-issued release.

Kapoor, who will report to Agarwal, will be responsible for growing OYO’s business in India as well as across international markets, through strategic partnerships and investment opportunities, the statement added.
“From one property in Gurgaon, to now over 12,000 franchised and leased assets in over seven countries and 500-plus cities, from budget hotels to its more recent foray into resorts business, and most recently its bold entry into the housing business, makes one thing really clear, this place is the perfect combination of ambition and ability,” Kapoor said.

Prior to joining OYO, Kapoor was the executive director and a member of the board at Max Healthcare, a joint venture between Max India and Life Healthcare, South Africa.

“With Rohit taking on this mantle, we are confident that he will be able to help OYO Hotels & Homes set new benchmarks in the accommodations business and evaluate new opportunities in the real estate industry,” Agarwal said.
According to the press statement, prior to his stint at Max Healthcare, Kapoor, an Indian School of Business alum, spent close to a decade with McKinsey & Company as a consultant.

SoftBank-backed OYO has emerged as one of the largest hospitality chains in the country but has announced its entry into a number of new categories, apart from the budget hotel segment. Last month, it launched OYO Living, the long-stay managed home rentals space.

Kapoor’s appointment follows the company’s announcement earlier this month, naming former IndiGo President Aditya Ghosh as its chief executive for India and South Asia.
Additionally, the company, which now counts China as a home market, alongside India, has brought on board several well-known executives from leading consumer internet ventures, to lead its operations in the world’s second-largest economy.

Last week, ET was the first to report that OYO had hired Wilson Li as its chief financial officer for its operations in the country. Prior to joining OYO, Li used to be the finance and operations head at a listed car rental major Car Inc.

Separately, it has also brought on board Google and Uber executive Jia Zou as its technology head and Tony Liang, formerly with Wanda, SF Express and Dianping, as its chief human resources officer.

In an interview with ET, Agarwal had said that OYO, which was valued at $5.5 billion post its last ending round, currently manages 1,80,000 rooms across 4,000 leased and franchised properties in China. The six-year-old company manages 1,49,000 rooms in India and South Asia.

Sources: ealty.economictimes.indiatimes.com

Office leasing dips 46% q-o-q in NCR in Q3 2018: Report

Office leasing dips 46% q-o-q in NCR in Q3 2018: Report

November 24, 2018 in Investment News, Real Estate News

The National Capital Region (NCR) witnessed an overall leasing of 1.72 million sq ft, a decline of 46% quarter-on-quarter, according to a recent report by Colliers International.

The gross absorption was recorded at 7.65 million sq ft in the first nine months of 2018, the company said in a media release.

“Despite a quarterly decline in leasing across NCR, the year-to-date numbers indicate notable growth of 31% at 7.6 million sq ft. The last quarter will gain momentum with the year expected to close at 9.7 million sq ft against 7.9 million sq ft in 2017, said Sanjay Chatrath, executive director (NCR), Colliers International India.

The office market in Delhi recorded gross absorption of 0.14 million sq ft in Q3 2018, representing a quarterly contraction of 6.7%. Over the last three quarters, the continued decline in demand can be attributed to a lack of Grade A space in major micro markets such as the CBD and Aerocity.

In Gurugram, due to slower decision making on the part of occupiers, gross absorption declined 60% quarter-on-quarter and 50% year-on-year. With most occupiers expanding operations in Gurugram, it noted leasing activity of 0.80 million sq ft in the said quarter.

Noida recorded gross absorption of 0.78 million sq ft in Q3 2018. “Compared to the same period last year, leasing has increased by 30% as the average deal size expanded three times to 70,874 sq ft, the report said.

“The engineering and manufacturing sector was the leading occupier in Noida with 38.5% of gross absorption followed by technology occupiers on 32.1%, and the banking, financial services and insurance sector (BFSI) on 23.5%,” said Chatrath.

Sources: realty.economictimes.indiatimes.com

Essentials To Know About the Property Transfer

Essentials To Know About the Property Transfer

November 19, 2018 in Investment News, Real Estate News

Nothing can match the joy of buying a Property! We all take months to finalize a property, and then invest our hard-earned money and life savings in buying a Home.

But that’s not where your Home buying journey ends. Most of us are unaware of the post-purchase paperwork that we would need to complete.

Managing the countless legal paperwork which one requires to do for buying a Home is an extremely lengthy process. One such category of legal documents is the Property tax record. Indian Home buyers are unaware about changing the records in the property records when a property changes hands. Although the Municipal authorities maintain the tax record, if the change in ownership is not done, then tax receipts are generated in the previous owner’s name.

Here are two significant aspects of the property transfer process:

Changing Name in Property Tax document
For changing the name on the property tax document, you need to submit a few documents to the Commissioner of Revenue, the post which the verification is done in 25 to 30 days. Following are the documents that you would require:
1. Attested copy of the sale transaction deed
2. Receipt of tax last paid
3. Duly filled the application form with signatures
4. No Objection Certificate from the associated housing society

Mutation of property

This is a process which helps in transferring the title ownership from the property Owner to the buyer after the property is purchased. In common language, it is also known as ‘ dakhil kharji’. It helps the government charge taxes to the new Owner of the property.

All you need to do is submit an application to the Tehsildar with a non-judicial stamp on it. The most essential document is the No Objection Certificate (NOC) for purchase case, and an affidavit for the inherited case.

Sources: blog.magicbricks.com

Difference between Carpet Area, Built-Up Area & Super Built-Up Area?

Difference between Carpet Area, Built-Up Area & Super Built-Up Area?

November 13, 2018 in Defination, Real Estate News

Not knowing what each actually means is what could give Developers a chance to take you for a ride. However, it is not rocket science. Just a little reading and you will be pretty thorough with the terms. Here are some of the basics of Real Estate you should know.

Carpet Area

Carpet area is the area that can actually be covered by a carpet or the area of the apartment excluding the thickness of inner walls. Carpet area does not include the space covered by common areas such as a lobby, lift, stairs, play area, etc. Carpet area is the actual area you get for use in a housing unit. So when you are in search of a house, look at the carpet area and then make your decision, because that is the number that will give you an idea of the actual space at your disposal. Focusing on the carpet area will help you understand the usable area in the kitchen, bedroom, living room, etc. Nowadays, many builders don’t even mention the carpet area at first, and usually, charge on the basis of built-up area or super built-up area. Carpet area is usually around 70% of the built-up area.

Built-Up Area

Built-up area is the area that comes after adding carpet area and wall area. Now, the wall area does not mean the surface area, but the thickness of the inner walls of a unit. The area constituting the walls is around 20% of the built-up area and totally changes the perspective. The built-up area also consists of other areas mandated by the authorities, such as a dry balcony, flower beds, etc., that add up to 10% of the built-up area. So when you think about it, the usable area is only 70% of the built-up area. So, if the built-up area says 1200 square feet, it means around 30% (360 square feet) is not really usable, and the actual area you will get to use is only the remaining 840 square feet.

Super Built-Up Area

Super Built-up area is a builder’s BFF! It is the area calculated by adding the built-up area and common area that includes the corridor, lift lobby, lift, etc. In some cases, builders even include amenities such as a pool, garden and clubhouse in the common area. A Developer/Builder charges you on the basis of the super built-up area which is why it is also known as ‘saleable’ area.

Now let us consider this case – the rate is Rs. 2,000 per square foot and the super built-up area is 1,200 square feet, then the base cost will come up to 24 Lakhs.

When there is more than one apartment on a floor, the super built-up area is calculated in a different manner. Let us assume this is the case.

— The area of Apartment 1 is 1000 square feet

— The area of Apartment 2 is 2000 square feet

— The total common area is 1500 square feet, out of which the share of Apartment 1’s common area is 500 sq. ft. while the share of Apartment 2’s common area is 1,000 sq. ft.

Then the super built-up area of Apartment 1 is 1,500 square feet and of Apartment 2 is 3,000 Square feet. The super built-up area, as seen in this example, is divided in the ratio of the apartments’ built-up areas (in this case 1:2).

Considering the fact that Builders and Developers usually price their apartments based on super built-up or ‘saleable’ area, being unaware of the fundamental difference between carpet area and built-up area and other terms leaves one running blind. Often the actual usable area is much lower than the super built-up area. Some Builders take into account the carpet area while charging you, but this is only in the rarest of the rare cases. 90% of the developers calculate the base cost on the basis of the super built-up area; the more the amenities the higher the super built-up area.

Real Estate can be complicated, and you cannot change the rules and practices, but you definitely can make an informed decision when you’re aware of the various types of calculations for square footage, a seemingly major but actually simple job!

We hope this clears up the confusion that always seems to permeate floor areas and how prices are calculated, making it easier for you to make decisions. Got more questions? Ask us below!

Here’s Part 2 of Real Estate Basics, where we talk about OSR, FSI, Loading and Construction Stages.

Sources: housing.com

What Are Ready Reckoner Rates? Real Estate Basics:

What Are Ready Reckoner Rates? Real Estate Basics:

October 17, 2018 in Defination, Real Estate News

To avoid evasion of stamp duty through the undervaluation for agreements and to minimize the disputes on the quantum of stamp duty, all state governments publish area-wise rates of properties, on a yearly basis, known as Ready Reckoner rates.

What Is The Significance Of Ready Reckoner/Circle Rates?

The Ready Reckoner (RR) rate, as it is referred to in Mumbai, is also known as the Circle Rate in Delhi. This rate is the government’s estimate of minimum property values in various locations. The rate differs in every state, city and in different localities in those cities. Authorities determine the price of real estate in a particular locality, based on several factors. Based on these factors, a benchmark is set, below which no property transaction can take place in that particular locality. This benchmark is known as the Ready Reckoner/Circle rate. It is the minimum price on which the government will charge stamp duty and registration fees.

The RR rates are typically lower than the current market rates of properties in a particular area. The rate is reviewed periodically and revised, to bring it closer to market rates. As real estate transactions take place in the private realm and the price is often not disclosed, state governments need a benchmark, to ensure that they do not lose out on an important source of revenue.

How Does The Ready Reckoner Rate Affect Real Estate Transactions?

While RR rates specify the minimum amount at which properties can be sold in an area, there is no maximum limit above which a property cannot be sold. This leads to a significant difference between the RR and market rates. Most property transactions in India take place on the basis of the market rate in a particular locality. The stamp duty and registration fees, to be paid by the home buyer, are calculated on the basis of this market rate. Therefore, a big difference between the RR rate and market rate leads to a loss of revenue for the government. In rare cases where the RR rate is higher, the stamp duty and registration fees will be calculated on the RR rate. On the other hand, higher RR rates discourage home buyers from registering their properties. By periodically revising RR rates and bringing them closer to market rates in every locality, the state government can increase transparency in real estate transactions and also ensure that they do not lose out on revenue.

The Importance Of Ready Reckoner Rates For Home Buyers

The RR rate of properties in a particular area is a good indication of the amount of money a potential home buyer will have to shell out. Market rates of properties are almost always higher and property prices in an area tend to increase when the RR rate is expected to be increased. It is also beneficial for buyers to purchase property in an area, where the gap between the RR and market rates is relatively smaller, especially if the purchase is being financed by a home loan.

Sources: housing.com

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