Investment 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.


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.


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.


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.


Registration with HRERA is Must For Real Estate Projects

Registration with HRERA is Must For Real Estate Projects

October 22, 2018 in Gurgaon Investment, RERA Update

In a landmark decision, the Haryana Real Estate Regulatory Authority (HRERA) said that all real estate projects will have to mandatorily register with it. The authority asserted that all ongoing real estate projects and those which have been completed come under its purview as per the RERA Act. It said that the only exception would be those which got obtained completion certificate prior to the enactment of the Act. The order means that over 800 residential and commercial projects in Gurugram, which had sought the exemption for technical reasons, will now come under the ambit of the authority. Currently, 250 real estate projects are registered with HRERA, Gurugram. The judgment was delivered after a real estate company raised objections to the applicability of the rules and jurisdiction of HRERAon its project after a buyer filed a complaint against the delay in delivery of the shop she had booked. The authority also made it clear that merely filing an application for part completion, or occupation certificate by a department of town and country planning does not make a real estate projects exempt. “In several cases the applications are incomplete and the certificates have been obtained or are under process. This will not be allowed and neither condoned. All projects, which have not obtained completion certificate must get registered,” said Dr KK Khandelwal, chairman, HRERA, Gurugram. Simmi Sikka, a buyer in Emmar’s commercial real estate project Emerald Plaza in Sector 65, had complained to the authority seeking compensation for the delay in the delivery of a shop. “The question was raised whether a project which is not ongoing and has received deemed occupation certificate should come under HRERA or not. We have settled the issue once for all and made it clear that projects, including the Emmar Plaza, came under our purview,” said Khandelwal. The order also made it clear that the developers were under the wrong impression that only ongoing projects came under the purview of the act. “Somehow the developers also managed to get exemptions under HRERA rule and using these to their advantage tried to get an exemption from the Act. This cannot be allowed and everyone is accountable,” the order said. The authority also said that this order will also mean that any loophole in the Haryana rules, which led to the alleged dilution of the Central Act, will be plugged.

“This judgment has not only settled confusion regarding the applicability of act and registration of projects but also nullified the effect of dilution of rules. It will enable the authority to exercise power and functions in the true spirit of the RERA Act which otherwise had been marginalized on account of Haryana rules. This decision also settled the controversy regarding ongoing projects, which will now be treated as simply real estate projects,” said Khandelwal.

The authority also maintained that as far as ongoing projects were concerned, the authority would look into timely delivery, layout, planning, design and sanctions, and to ensure that there is no diversion of funds. For completed projects, which have been delivered in the last five years, the obligation of the promoter would entail workmanship and structural defect liability. All real estate projects are covered for land title defect liability. it said. Sanjay Sharma, a Gurugram based real estate consultant, welcomed the ruling.

“This is the step in the right direction. It will bring all the ongoing projects under the purview of HRERA,” he said.

Sharma also called for proper legislative backing to the authority so that it could act independently.

“It is most likely that this decision could be challenged in a higher court. The government should give legislative backing to this order to ensure HRERA Act is not diluted and its judgments are implemented,” said.

Sanjay Sharma, a Gurugram based real estate consultant, welcomed the ruling.

“This is the step in the right direction. It will bring all the ongoing projects under the purview of HRERA. It is most likely that this decision could be challenged in a higher court. Therefore, the government should give legislative backing to this order to ensure HRERA Act is not diluted and its judgments are implemented,” Sharma said.


India Office Leasing Tops 32 Million sq.ft. in First Three Quarters Of 2018

India Office Leasing Tops 32 Million sq.ft. in First Three Quarters Of 2018

October 13, 2018 in Investment News, Real Estate News

With sustained interest from occupiers led by the technology sector, commercial leasing activity across India has crossed 32 million sq ft, up 7% from a year ago, across India’s top 8 property markets in the first three quarters of 2018.

Office space absorption during the September quarter rose 3% from a year ago and 12% sequentially to 10.9 million sq.ft.with Mumbai, Bengaluru, Hyderabad and NCR accounting for almost 80% of the leasing activity, said showed data from property consultant CBRE South Asia.

Occupiers from the technology sector, with a share of 48% of total leasing, drove office space take-up in the country during the third quarter. Occupiers from the engineering and manufacturing sector with 14% share were followed by co-working and business centre operators that absorbed 11% of the total leased space.

“India’s economic growth continued on its upward trajectory and real estate services along with financial and professional services sector contributed to this economic surge as it grew from 5% in the previous quarter to 6.5% during the review period. Sectors such as BFSI, engineering & manufacturing, and agile/ co-working/business centres are likely to account for a larger share in leasing activity going forward,” said Anshuman Magazine, Chairman, India and South East Asia, CBRE.

Interestingly, India had witnessed 42 million space absorption in 2017, while the first nine months of 2017 had seen absorption of 30.1 million sq ft. Even as several mid-to-large-sized deals were reported in Bangalore, Hyderabad, Pune and Gurgaon, more than 30% of the transaction activity was reported in SEZ space.

Similar to the previous quarters, office space take-up was dominated by small- and medium-sized transactions. Mid-sized transactions ranging between 10,000 sq.ft.and 50,000 sq.ft.accounted for around 45% of the transaction activity, while small-sized transactions less than 10,000 sq.ft.had a 42% share.

The share of large-sized deals with over 1 lakh sq.ft. size increased to 7% during the quarter. The agile workspace sector continued to witness a strong growth momentum, with global and Indian majors expanding their footprint in tier 1 and tier 2 cities. Co-working and business operators leased about 3.3 million in the first three quarters of the year, almost doubling their take-up reported in the first three quarters of 2017. Other sectors such as Banking, Financial Services and Insurance (BFSI) with 7% share also contributed to the increase in leasing activity.

“The trend of agile spaces is rising during a booming start-up era, even as corporate are drawing up fluid expansion and occupation plans. Occupiers are also expected to keep strong checks on space utilization ratios and innovation in workplace strategies while expanding their footprint and implementing their expansion plans. Also, SEZs are expected to account for a larger share of the upcoming supply over the next few quarters. Given the approaching sunset date, we anticipate an increase in demand for SEZ s space,” said Ram Chandnani, Managing Director, Advisory & Transaction Services, India, CBRE South Asia.

Pre-leasing activity rose in during the quarter, largely in Bangalore and Hyderabad, driven primarily by tech and BFSI corporates. Overall, the country witnessed more than 12 million sq.ft.of pre-commitment transactions in mostly under construction assets in the first three quarters of the year, the report said.

On the other hand, supply addition during the quarter dipped marginally by 1% from a year ago to 7.1 million sq ft. Bangalore and Kochi accounted for 60% of the quarterly supply addition, followed by Mumbai and Hyderabad. Except for Pune, Kolkata and Kochi, all cities reported a dip in development completions on a quarterly basis. Slippages were reported in cities such as NCR, Mumbai and Hyderabad.


Why A Brand Name Is Important While Investing In Real Estate

Why A Brand Name Is Important While Investing In Real Estate

October 3, 2018 in Investment

Buying a property is considered one of the biggest financial decisions in every household. A lot of factors influence this decision and one of the key aspects is the brand name. A good brand name is an important factor that you must pay special attention to as it’s not only a matter of dignity and pride but also serves as a measure of the value of the property. Following are some of the reasons why you should opt for a builder who has an impressive repertoire and a strong brand image.

Credibility and Expertise

While you’re looking to invest in real estate, it’s important to opt for a trusted builder to avoid any sort of foul play. Their dealings are very transparent leaving no chance of financial fraud. On the other hand, chances of the property being built on an undisputed land are high with a lesser renowned builder.
There’s also the level of expertise that reputed builders come with. They have a great deal of experience and knowledge about the industry. A branded builder will offer apartments with impeccable facilities and superior aesthetics without compromising on the quality of construction.

Delivery on Time

When you’re purchasing a property from a reputed builder, you’re most likely to acquire the apartment on time. They make it a point to not disappoint their customers and ensure a timely delivery of apartments no matter what. Moreover, projects developed by reputed builders are all RERA certified. On-time handover is one of the main highlights of the RERA bill, making it even more certain that you will receive the keys to your new home on the promised date.

Greater Return on Investment

If you’re planning to sell or rent out your apartment, the brand name of the property is going to work in your favour. You are certainly going to enjoy huge revenue from it because the value of the property automatically increases when it comes from a branded builder. Additionally, reputed builders always develop properties in either upcoming localities or well-established areas, with emphasis on good social infrastructure and connectivity. With all these boxes checked, you are guaranteed to enjoy higher ROI.

Ease of Home Loan Sanctioning

A reputed real estate brand comes with the added benefit of easy loan sanctioning. If you’ve invested in a property that has been developed by one of the leading and most popular builders in the market, then the chances are high that your home loan gets sanctioned without much hassle.

Most reputed builders have tie-ups with the prominent banks like ICICI, HDFC, and SBI which drastically reduce any risk of fraud or malpractice. These banks trust the reputed builders and that makes your loan sanctioning process a piece of cake! Avoid making the common mistake of investing in a real estate property developed by a less renowned builder as you might get your hard earned looted.
Invest in a property that has established a bond of trust with its prior customers and has earned a good reputation in the market. One such builder is the House of Hiranandani that has been changing the landscape of real estate in India. Our developments stand as proof of superior aesthetics and top-notch quality construction with all the global amenities.


Important Rules For NRIs Investing In Indian Real Estate

Important Rules For NRIs Investing In Indian Real Estate

September 26, 2018 in Investment, NRI News

Non-resident Indians (NRIs) have been a significant segment of investors, in the Indian real estate market. NRIs generally buy properties in India for investment purposes or out of their emotional connection with their country and for settling back, once they retire.

According to Amit Wadhwani, director of Sai Estate Consultants, India has emerged as a lucrative spot for international capital. “Overseas investments have surged 137 per cent, from USD 3.2 billion during 2011-13 to USD 7.6 billion during 2014-16. According to a survey, almost 30 per cent of the total global real estate transactions in India, will be cross-border,” he adds.

Important FEMA rules that NRIs must keep in mind: In order to attract more foreign investment, the Reserve Bank of India has made the rules simple for NRI investments. Real Estate transactions fall under the purview of the Foreign Exchange Management Act (FEMA). “An NRI or person of Indian origin (PIO), as defined in FEMA, can acquire by way of purchase, any immovable property in India, other than agricultural land/plantation property/farmhouse. This is under a general permit that has been given by the government of India. However, no person being a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan, shall acquire or transfer immovable property in India, other than lease, not exceeding five years, without prior permission of the Reserve Bank,” explains Amarjit Bakshi, managing director, Central Park. Types Of Properties Where NRIs Can Invest:  An NRI is allowed to invest in both residential and commercial properties in India. However, any agricultural land, farmhouse and plantation property can be owned, only if it is inherited or gifted to the NRI. Financial Transactions By NRIs: When it comes to property transactions in India, NRIs/ PIO can make payments out of:

  • Funds remitted to India through normal banking channel.
  • Funds held in NRE/ FCNR (B) / NRO account maintained in India.
  • No payment can be made either by traveller’s cheque or by foreign currency notes.
  • No payment can be made outside India.

Loan Eligibility For NRIs:  Bakshi elaborates that “Like normal Indian citizens, NRIs/PIOs too can avail of home loans in Indian rupees for their property purchases, up to 80 per cent of the property value, depending upon individual eligibility. Such a loan can be repaid:

  • By way of inward remittance through normal banking channels.
  • By debit to his NRE / FCNR (B) / NRO account.
  • Out of rental income from such property.
  • By the borrower’s close relatives, as defined in Section 6 of the Companies Act, 1956, through their account in India, by crediting the borrower’s loan account.”

How NRIs Are Taxed, For-Profit Earned From Real Estate Investments NRIs can earn returns from their investments in real estate, in the form of rental income and short or long-term gain. Rental Income The rental income earned from a property asset in India falls under the income accrued in India and is taxable, irrespective of residential status. Short-Term Capital Gains Short-term capital gains apply to the profit earned through the sale of a property, within two years of its purchase. The capital gains for such property are calculated as the difference between the sale proceeds and the cost of acquisition. It is taxed as per the applicable slab rate for the NRI. Long-Term Capital Gains Long-term capital gains (applicable when the property is held for more than two years) are taxed at 20 per cent. However, unlike short-term capital gains, the exemption can be claimed under sections 54, 54 F and 54 EC. If an NRI opts for an under-construction property, they may have to give a power of attorney to a trusted associate, for completing the deal. Hiring a lawyer to prepare the document, is also crucial, to ensure that there is no forgery and the investment is secure. Sources:

DLF To Invest In Commercial Projects In Gurugram

DLF To Invest In Commercial Projects In Gurugram

September 10, 2018 in DLF News, Gurgaon Investment, Investment News

Realty major DLF will now invest over Rs 1,400 crore to develop a commercial project in Gurugram after the firm received the green nod to expand the office space by nearly 1 million square feet area.

After the Haryana government increased the floor area ration (FAR) under its new TOD (Transit Oriented Development) policy, the DLF applied for the development of increased build-up area in its ongoing Cyber Park project spread over nearly 12 acres.

The environment ministry has given the green nod for the DLF’s proposed expansion project in Gurugram after taking into account the recommendations of the Expert Appraisal Committee, as per the official document.

The approval is subject to the compliance with certain conditions, it added.

As per the proposal, the DLF will now invest Rs 1,439.11 crore to develop the Cyber Park project, as against the earlier estimate of Rs 412.67 crore.

According to the sources, the company will now get a leasable area of around 2.5 million square feet as against earlier 1.7 million square feet.

The construction of this project, which is located close to Cyber City that commands high rental, is in the advanced stage and the company has already pre-leased about 60 per cent of the area, they added.

In the proposal, the DLF has informed that the number of parking will increase to 4,425 from 3,542 cars and would generate employment to 35,532 persons.

DLF, the country’s largest realty firm, is a leading developer of a commercial real estate with a portfolio of over 30 million square feet.

To monetise its rent-yielding commercial assets, the DLF promoters have recently sold 33.34 per cent stake in its rental arm DCCDL for about Rs 9,000 crore. The realty major holds the remaining 66.6 per cent.

Recently, the company has bought 12 acres of land in Gurugram for Rs 1,500 crore to develop another commercial project.


Will Rope In Builders, Industry Bodies To Finish Delayed Projects In Gurugram

Will Rope In Builders, Industry Bodies To Finish Delayed Projects In Gurugram

September 4, 2018 in Investment News, Real Estate News

The Haryana RERA will devise a mechanism to rope in developers and industry bodies to complete realty projects which have been pending for years, said the regulator’s Gurugram bench chairman KK Khandelwal at a meeting held on Monday.

“We are working on a mechanism, which will be sent to the state government for its approval so that we can deliver as many realty projects as possible,” said Khandelwal.

Earlier at Monday’s meeting, president of National Real Estate Development Council (Naredco) Praveen Jain said many developers were indeed interested in taking over the realty projects that had been pending as their original developers had gone bankrupt or not in a position to complete them owing to multiple reasons.

“In cases where the net worth is positive, many developers are interested to take over and finish the project. We have even approached the state government with such proposals but there was no policy or guideline available for the same,” said Jain.

The role of RERA, Khandelwal said, was that of a facilitator, and completion and handover of projects was its top priority. According to him, whenever the RERA bench receives a complaint, it first tries to settle it outside the authority between the buyer and the builder.

“We have resolved 15 cases till now in out-of-the-authority settlements,” he said. Till now, 4,000 projects and more than 600 real estate agents have been registered in Haryana under RERA.

A group of homebuyers who were also present at the event voiced their concerns, questioning as to why the authority was taking months for the resolution of complaints when the Act requires the complaint to be addressed in two months.

“Even though the Act mentions that buyers’ complaints should be resolved within two months, many of them have been pending for months. We need to know as to why is it taking so long to resolve the complaints by the RERA bench,” said Naveen Arora, general secretary, Universal Aura Welfare Association.

To this, Khandelwal said when the bench started its operations with 800 complaints, there was a backlog and there weren’t enough resources. However, processes would be streamlined and complaints would be resolved as soon as possible, he said.

All realty projects, he reiterated, come under the ambit of RERA even though only those under construction are required to register with the authority.

Buyers can approach the bench with their complaints against builders in any realty project, he added.


© 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

>> <
  • JMS Marine Square
  • Central Park-Flower Valley

Micro Sites