The multiple aspects on Real Estate in India

The gap between the supply and demand is huge in affordable housing and it may take long years to meet the demand for the economically weaker housing.
Overview on the real estate industry in India
Urban Real estate in India comes from nine cities namely, Chennai, Bangalore, Hyderabad in South, Kolkata in East, Mumbai and Pune in the west and Delhi, Noida, Gurgaon in the Northern part of India. These nine cities may be contributing close to about 60 % of Real estate development. The gap between the supply and demand is huge in affordable housing and it may take long years to meet the demand for the economically weaker housing.

Effect of RERA and GST to the real estate market in India
RERA will bring down the number of players in the industry on one side and on the other side will have few good quality players. RERA will discipline the industry. But for the RERA and the industry to be successful, there needs to be some correction on the current RERA bill. GST will also help real estate growth in long term, but in short term the cost is likely to go up marginally.

‘Housing for all by 2022’ and how builders like Shriram can play a role in achieving this objective
Our Prime Minister’s vision of Housing for all by 2022 is a noble cause. Once this is achieved, this one mission alone can take our country to different heights. This will bring lot of prosperity to our country – crime rate will come down by more than 50%, productivity will go up by at least 30%, and people would become more civilized. This must be done like an emergency for the prosperity of our Nation at all levels. From Shriram, we are keen to play an important role in contributing to our Prime Minister’s vision.

The role of FDI in real estate in the creation of affordable housing
I would divide this into two parts. One is ‘Affordable housing’ and the other is ‘Housing for All’. What is most important for our country now is Housing for All. Only this will uplift our society. For us to make this Housing for All to come true, we need affordable long term capital. It can be through FDI or ECB or even long term bonds. We need to look at various options of making cheaper funds available for this sector.

New growth markets across India
It is only the nine major cities Delhi, Noida, Gurgaon, Mumbai, Pune, Kolkata, Bangalore, Chennai and Hyderabad take a major share of the growth. But the Delhi Mumbai corridor, Bangalore Chennai industrial corridor, and the developments in north eastern parts would bring new growth opportunities.

Interest of PE investors, Venture Capitalists in the Indian real estate market
It is a fact that some of the PE investors haven’t made good returns so far. But the interest remains bullish from both PE investors and Venture capitalists.

Focus on Tier 2 and 3 markets for real estate growth opportunities
Currently, there is not much demand in Tier 2 and 3 markets. This will happen only when the industrialization happens in these cities. Having said this, urbanization is pushing its demand in these markets slowly.

Key consumer trends, buying patterns and overall outlook of the real estate industry
Consumer will look for better product and better service. But typical Indian consumer mind, may not be willing to pay a good price for a better service. Overall outlook for the industry looks very bright and the growth can be at a rate of over 30% YoY for at least next five years.

Role of real estate in Urban Infrastructure
Real Estate plays a very critical role in Urban Infrastructure. Real estate defines the city architecture, city’s culture and its behavior. Real estate and the urban infrastructure should go together. If we look at the civilization and older cities, the urban infrastructure and real estate were one phenomena and it was not two different. Urban planning always included the real estate. This is even applicable to some of the latest smart cities like Barcelona, Shanghai, Singapore and even our very own Chandigarh. It just reflects the nature of the people. There are two ways to deal with this – build the city’s real estate based on the nature of their people or define the real estate with urban infrastructure to reflect the nature of the people. Historically, the rulers have used real estate and urban infrastructure to build a better society and to define the nature of their society.

Escalating land prices and the role of government
Government should not have any role in defining the land prices is my view. Let us take the example of Hyderabad and Ahmedabad. According to me, the land and real estate prices will always be fair to the end users and will never sky rocket. It is because of the good infrastructure created by these states in the last ten years. The focus on infrastructure by these two states have not only kept the real estate prices in control, but also helped consumers to have a better quality of life.

Technology in real estate
In our country so far, the technology is catching up very slowly. This needs to be changed. Our Prime Minister has a great vision of ‘Housing for All by 2022’, and for this dream to become reality, new technology is the only solution. We should also focus on making Green buildings and this is the future.

Housing units in Southern India
Bangalore has natural advantages as a city despite its huge problems on its infrastructure development. Chennai also has a lot of natural advantage because of its industrialization and higher level of literacy rate. Hyderabad follows these two cities. Having said this, the infrastructure that has been created in Hyderabad and the Government’s vision plan for the next 20 years are incredible. If Bangalore and Chennai do not give focus on its urban infrastructure, they could lose out to Hyderabad in the next five years.

Real estate, a major player in the scheme of urban development
Any development need to be inclusive which is very important for its sustained growth. It is just not the infrastructure development, there needs to be employment generation for its long term sustainability. The infrastructure growth offers short term employment opportunities and unless we create long term employment opportunities, this will lead to speculation or such cities would fail.

Once again, our Prime Minister’s vision of ‘Make in India’ can bring solution to a major level. We may have to focus on industrial and agricultural development for our long term sustainability. While creating the city design, we need to keep these two factors in mind.

Rental housing as a key consumer pattern
Indians believe in owning homes and this acts as security to them. Hence I doubt whether rental housing can be a solution. Also given the yield Vs cost of funds, it may be difficult for rental housing to become successful. This can become success when the gap between the yield and cost of funds reduces. For the real estate not to become expensive, we need to focus on infrastructure growth.

Regulations impacting the industry
This is one industry which is over regulated. Any industry to grow well and to meet its objectives, the industry must be well regulated and not over regulated.

By The author M Murali is Managing Director of Shriram Properties  Courtesy IIFL



Builders bat for branding Nashik as real estate hub

Builders bat for branding Nashik as real estate hub

Nashik: The Confederation of Real Estate Developers Association of India (Credai) in Nashik has come up with a branding strategy for the city to overcome the slowdown in the real estate sector.
As part of this, the builders’ body is in the process of holding talks with experts and various other organisations to chalk out a roadmap for the project.
Speaking to TOI, Sunil Kotwal, president, Credai Nashik, said, “The realty sector is already passing through a phase of slowdown. Moreover, sanctions on the new building plans and building completions have been affected due to the NGT issues. Builders are unable to complete their new projects . In fact, the Nashik Municipal Corporation (NMC) needs to address these problems at the earliest. The civic body is giving conditional permissions to the new building plans but it is practically impossible to fulfil these conditions.” He further said, “But despite these issues, we are working on how to increase the demand for real estate.”
Kotwal said, “We have decided to brand Nashik city to generate demand for the real estate segment. We will hold talks with experts and other organisations on how go about it. We will prepare the blueprint once feedback and inputs are taken from the experts. The objective is to attract people towards Nashik by highlighting the city’s potential as a real estate hub.”
A source from Credai said that the industrial body has begun a survey of the real estate projects to obtain authentic information pertaining the ready, but unsold flats and projects under construction. The survey has already been started and is expected to be completed shortly. Credai has a total of 258 builder members. According to the primary survey, around 8,500 flats by 50 builders are under construction in the city, while ready constructed but unsold flats are close to 1,700. Of the total flats under construction, around 5,500 flats are by six major builders alone, while the remaining 3,000 flats under construction are by 44 builders.
According to market sources, close to 3,000 ready flats amounting to Rs 1,000 crore are reportedly lying unsold across the city due to recession. Unrealistic rise in the Ready Reckoner (RR) rates in some locations is also one of the reasons for the slowdown. The RR rates are more than market rates in Gangapur Road, Mahatmanagar and other parts of the city.
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Courtesy Times Of India

RERA Act will change real estate work culture

RERA Act will change real estate work culture

Amid apprehension on the ‘adverse’ impact of the implementation of Real Estate Regulation Authority (RERA) Act-2016, it has been described as one that would bring about transformation in the real estate sector’s work culture, transparency and discipline.

Addressing a workshop on the Act organised by CREDAI, Visakhapatnam chapter, senior advocate from the High Court M.V. Durga Prasad said builders should guard against their vulnerability as once they register on the website and open a bank account to deposit 70 per cent of money collected, their dealings would be in public domain.

The State government has to constitute the RA and tribunal and frame rules within one year of passing of the Act by Parliament. The workshop was organised keeping the timelines in view. Mr. Prasad said many of the provisions were contained in AP Apartments Act but timelines, disclosure of project details on the web page allotted to it, title insurance and collecting only stipulated amount at the time of booking were among the provisions of the Act. Since the data would be in public domain builders were vulnerable. They should keep their books clean and develop their own ethics for staying in business, he said.

Builders cautioned

Mr. Durga Prasad cautioned builders against complacency in title insurance as their liability would be unlimited. The penal provisions if the builder fails to complete the project were stringent and could affect goodwill earned all through the life, he warned them.

Though the State government officials were not brought under the Act, transparency would bring accountability. Since the State government had to appoint the Competent Authorities builders could seek creation of single window for clearance and relaxation in other provisions, he suggested.

However, big players and FDIcould hit the average builders hard, Mr. Durga Prasad said advising them to think of floating their own trust to raise funds.

Stating that in any industry customer was the king, Municipal Commissioner M. Hari Narayanan hoped at the right time government would bring new Acts.

Courtesy The Hindu

Transparency, corporate governance main bottlenecks for real estate

ICRA’s Rohit Inamdar talks about the current scenario in the real estate sector, and what changes the new real estate Act can bring to the sector

For the last few years, the real estate sector has been stagnant. Few project launches and sluggish price trends add to the view that real estate is ‘down’. This could change with the implementation of the Real Estate (Regulation and Development) Act (RERA), 2016, which is expected to bring in transparency and solve other problems such as project delay and quality of construction. Rohit Inamdar, senior vice president, ICRA Ltd, spoke to Mint about the current scenario in the sector, and what changes the new real estate Act can bring to the sector. Edited excerpts:

How do you see prevailing situation in the residential housing segment?

Very few launches have happened in the residential housing project in the last couple of years in major markets such as Mumbai, Bengaluru, and especially in Delhi NCR (national capital region). We have observed a few project launches recently. However, the large inventory and slow sales fail to inspire confidence among the builders. Under-construction projects are not attracting many investors, as they do not see much upside in terms of rate movements. End users are looking only for completed properties, as they don’t want to take on the construction risk. All these factors add to a difficult market. Hence, developers opt for varied methods like 80:20 schemes (where you pay 20% of the property value at the time of booking and the rest at possession) to push sales.

Do you think that developers are waiting for the RERA to be implemented, and then launch the new projects?

Yes definitely. As real estate is a state-level subject, once specific provisions are declared things will get much clearer. The developers are awaiting that. But, there are grey areas as the Act is not very clear about the project to which it is applicable. I understand that projects without the occupation certificate, before the implementation of the Act, are likely to come under the preview of the Act.

We also believe that with the RERA, a lot of consolidation could happen. Smaller developers with a few projects could, at times, find it difficult to conform to the compliance norms. There has, therefore, been an effort at consolidation, whereby many large developers have taken over smaller projects. This is likely to help in execution and also provide the initial funding to kick start the stalled projects. Once the RERA comes into force, more such consolidation is likely to take place.

How will RERA be able to address the issues such as project delays and low quality of construction?

It all depends on how it is implemented. But most issues like project delays would be addressed as it is likely to bring in a certain level of financial discipline. Normally, if you sell 70% of the project, you don’t need bank funding.

In almost all the market, everything can be done on the basis of 20% money received as booking amount and initial payments, and the subsequent payments can come in on a construction linked basis. There was a time, in markets like Gurgaon, when payments by customers were not linked to construction. Irrespective of the progress of construction, the developers got the money with the passage of time. The fact was that this money was used to fund either other projects or buy lands, and this created the project delays. Otherwise, once you have the approvals these (residential housing projects) are not very challenging constructions. By definition if you are able to sell about 70% of the available units, these projects can be easily funded by cash flows that the project generates.

So, once RERA comes into force, project delays would come down because it has provisions that require all approvals for the projects to be in place before the launch and maintaining 70% of the amount received in an escrow account. This is likely to bring in financial discipline. Of course, if the developers are not able to sell the projects up to that threshold (70% of the project), then they may need other sources of funding.

How will RERA help the sector to attract funding from different sources?

Transparency and corporate governance are the main bottlenecks for the real estate sector currently. We also see that the better-off companies attract a lot of capital from foreign investors. If these issues are taken care of, funding will definitely increase. But for that, the outlook of the market also has to improve.

Do you think it’s a good time to buy or invest in residential real estate market?

It’s a good time for end-use buyers who are sitting on the fence. Now developers are also focused on liquidating their completed inventory, because that is where homebuyers are showing some interest. Homebuyers are not willing to take the construction risk by investing in under-construction properties.

Commercial real estate transactions have already started picking up in last 2 years. Occupancies have gone up in the recent past, rentals have remained firm, and vacancies have lowered. There is always a lag between the absorption in commercial and residential spaces. The residential absorption is expected to go up over the next 2 years and since few launches have happen in last few years, there are chances of prices going up. Pent-up demand and lack of additional supply is expected to result in price appreciation after couple of years. Investors having a long-term horizon of more than 5 years can think of investing in real estate. Three years from now, we are likely to see some upside in the market.

By Ashwini Kumar Sharma Courtesy Live Mint

Dubai real estate owners can now create online property will

The registration cost of a single property will is Dhs7,500

Real estate owners in Dubai can now protect their assets by creating an online property will.

Dubai’s DIFC Wills & Probate Registry (W&PR) has launched an online facility for eligible resident and non-resident property owners to pass on their assets.

Property owners can now complete a template will online that is specifically limited to real estate.

The formalities of registration remain the same as for all other forms of will that are registrable at W&PR.

The registration cost of a single property will is Dhs7,500 and that of two mirror property wills is Dhs10,000.

The new facility is available on the registry’s website.

It has been developed to address the concerns of both residents and investors in relation to inheritance matters, particularly where the sole or major asset is real estate property, a statement said.

Sean Hird, director of DIFC Wills & Probate Registry said: “The number of Dubai property transactions by non-Muslims is likely to reach 13,000 this year and we want to make it as easy as possible to protect those properties through the registration of a will.

“We have sought to provide an innovative solution that gives both residents and overseas property investor’s peace of mind – knowing that they can create a compliant will that will ensure their property is passed to their chosen beneficiaries.”

Previously, the W&PR rules only set out specific mandatory statements that must be included in a will for it to be registrable. However, the new property will template “can be easily completed”, the statement said.

“To date we have registered more than 1,500 wills at W&PR. The new property will is part of our broader strategy to make registering a will accessible to more people and already this year we have taken significant steps towards this,” said Hird.

“We secured major new partnerships with Emirates NBD, NBAD, Citibank, and RAKBANK – to offer easy zero per cent payment plans to their cardholders over periods of up to 12 months.”

The DIFC Wills & Probate Registry is the first jurisdiction in the MENA region where a person can register an English language will under internationally-recognised common law.

Courtesy Gulf Business

Investors moving billions into real estate ahead of a big market change

Real estate stocks are getting a place of their own in the market this week, and investors are taking notice.

As of the close of trading Friday, the industry will become its own sector in the S&P 500, bringing the broad market index up to 11 divisions. The move primarily affects real estate investment trusts (REITs), moving 28 issues with nearly $600 billion in market cap out of the financial sector and into the new real estate heading.

The decision came primarily because officials at S&P Dow Jones Indices believe the industry has become large enough that it should be split from the broader financials that include commercial and investment banks, insurers, brokerages and exchanges.

Practically speaking, there’s an important impact on investors.

Portfolios that track the S&P 500 will have to be readjusted to accommodate the new sector, which is expected to account for just over 3 percent of the total index. Financials, which currently account for about 13.1 percent of the S&P 500, likely will drop below 12 percent.

That means investors looking to achieve balance in their portfolios will have to adjust their allocations accordingly.

Ahead of the move, investors have been piling money into real estate funds. In fact, the sector has generated the largest inflows to exchange-traded funds this year of any of its peers, pulling in $1.08 billion in August alone and $7.6 billion for 2016, according to figures released Thursday by State Street Global Advisors.
Among individual funds, the biggest gainer by far has been the $35.7 billion Vanguard REIT Index Fund, which has pulled in $4.57 billion this year. The $2.87 billion Schwab U.S. REIT ETF has collected $706.2 million, while the $4.3 billion iShares Cohen & Steers REIT fund has had inflows of $355.2 million. (All numbers according to FactSet.)

Investors in the sector have been rewarded. The Vanguard fund is up 12.6 percent year to date, nearly doubling the 6.7 percent that the S&P 500 has returned.

S&P chose Friday to introduce the real estate sector because the day also marks a “triple witching” in the market. The term refers to the expiration of contracts for stock index options, index futures and options during the final hour of trading.
That will give market participants time to reallocate on a day where conditions are conducive to making changes.

“It’s a day with a huge amount of liquidity in the market, trading is faster and more efficient than usual, and it’s a good day for people to rebalance their portfolios,” said David Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices. “There will be some people who will be rebalancing their portfolios to make sure their weight in real estate is the right weight.”

The sector is part of the Global Industry Classification Standard implemented in 1999 to help investors make sure they could see what was moving the market and make decisions accordingly.

By Jeff Cox Courtesy CNBC

Real estate startup gets gamification innovation

Real estate startup, Square Yards on Wednesday, announced the release of its new gamification based real estate marketing innovation developed by Scapeworks. The first instance of this new game based innovation was released in collaboration with Bhutani Alphathum, a Noida based property developer.

In the game, the players have to traverse through the animated rooftop pool terrace and collect the hidden letters of the word “ALPHATUM” within a definite time frame. There are gift vouchers linked with the quantum of points earned. The game has been digitally designed to give the players a real time feel of the overall project.

Potential client/investor can experience the feel of sky park terrace and infinity pool, the amenities around and view the landscape from the top. In a statement,COO and Head of Marketing, Square Yards, Kanika Gupta Shori said,”We are continuously pushing the realms of real estate marketing and deploying ground breaking innovation to stand out from the rest, virtual reality based games could be the next thing for real estate companies to market their properties across different geographies and roll out more engaging campaigns.”

Courtesy – The Economic Times

When India’s first International Real Estate awards hit Delhi

The best of the real estate fraternity recently came together to charm the Capital with their charisma and style at the Realty Fact Awards (AsiaPacific 2016).

The process of choosing winners began with inviting entries. The response was overwhelming, with entries pouring in from Builders, Developers, Interior Designers, Architects, Property Advisors, IPCS/Brokers/Realtors, Real Estate Media – OOH/Digital/Radio and so on.

The Realty Fact Real Estate Awards focuses on global development and aims to recognize developers and other service providers in the real estate / property sector across India, SE Asiaand Middle East.

Realty Fact Editor-in-Chief, Kumar Saurabh said that the nomination process attracted a lot of interest from Indiaand other Asian countries.

The forum is designed and tailored for visionary senior executives at CEO, CMD, CSO and CFO level, who are empowered with innovation and growth objectives to lead their organization.

Held at Radisson Hotel, the event saw the presence of former West DelhiMP Mahabal Mishra; former West DelhiMCD chairman Sanjay Puri; P.S.N. Rao, Chairman of the DelhiUrban Art Commission, Ministry of Urban Development; and Sumit Jha, Founder and CEO of NIREM.

Here are the names of the winners in 32 categories:

  • 1. Developer of the year (India) – DLF Ltd
  • 2. Timely Dilivered Projects developer of the year – Tulip Infratech Pvt. Ltd
  • 3. Most Admired Upcoming Project of the Year (UAE) – Jumeirah Golf Estates for the Alandalus Project
  • 4. Best Luxury Project of the Year – Omkar Realtors and Developers Pvt. Ltd
  • 5. Integrated township Developer of the year – Poddar Housing and Development Ltd
  • 6. Developer of the year Retail – Pacific Development Corporation Ltd
  • 7. Best Laminates & Adhesive Company – Stylam Industries Ltd
  • 8. Luxury Project of the Year Project UAE – Jumeirah Golf Estates for the Redwood Project
  • 9. Affordable Developer of the Year – Signature Global
  • 10. India’s Best Real Estate Consultant – SMC Real Estate Advisors Pvt. LTD
  • 11. Construction Company of the year – CK Constructions
  • 12. Luxury Project of the Year – CASA GRANDE Pvt. Ltd
  • 13. Developer of the Year – Residential (CASA GRANDE Pvt Ltd and KV Developers Pvt Ltd)
  • 14. Innovative Digital Broker of the Year –
  • 15. Most Trusted Property Consultancy Company of the year – HDFC Realty Ltd
  • 16. Environment Friendly Project of the Year – K. Raheja Corp for Mindspace Airoli Navi Mumbai
  • 17. Residential Township Developer of the year – Gaursons India
  • 18. Luxury Developers of the Year – TATA Housings
  • 19. Green Building Concept of the year – JSW Cements
  • 20. Innovative Construction Material – MFS Formwork Systems Pvt. Ltd
  • 21. Innovative Online Commercial Real Estate Portal –
  • 22. Property Management Firm of the Year – Zenify
  • 23. Green Building Concept of the year – Urban Tree Infrastructure Pvt. Ltd
  • 24. Innovative Design Concept – Anj Turnkey Projects Private Limited
  • 25. Plant and Construction machinery – Anj Turnkey Projects Private Limited
  • 26. Women super achiever in real estate – Kanika Shori Gupta, COO Square Yards
  • 27. Best Property Experts – Pradeep Mishra
  • 28. Best Real Estate Show Producer – Aditya K. Rana for Grihpravesh on AAJ Tak
  • 29. Best PR Company – Goldmine Advertising LTD
  • 30. Best PR Professional – Manoj K Sharma, Goldmine Ad Ltd
  • (This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

    Courtesy – Business Standard

पैसे हैं तो घर खरीदने का यही है सबसे सही समय

राज्यसभा में गुरुवार को रियल एस्टेट बिल पास हो गया है. बिल में कई सारे ऐसे प्रावधान हैं, जिसको लेकर उम्मीद की जा रही है कि इससे बिल्डर्स की मनमानी पर रोक लगेगी. यानी सीधा फायदा ग्राहक यानी हमको-आपको मिलेगा. लेकिन खास बात यह है कि बिल को सदन से धरातल पर आने में अभी करीब छह महीने का समय लगेगा, जबकि इस दौरान बाजार में बिल के मद्देनजर कई बड़े प्रभाव देखने को मिलेंगे.

‘इंडिया टुडे’ हिंदी पत्रिका के संपादक और आर्थि‍क विशेषज्ञ अंशुमान तिवारी कहते हैं कि आने वाले छह महीनों में रियल एस्टेट की दुनिया बदलने वाली है. इसका लाभ न सिर्फ कंज्यूमर्स को होगा, बल्कि‍ इंडस्ट्री को भी ग्रोथ मिलेगी. वे कहते हैं-

1) कॉन्ट्रैक्ट में होगा बदलाव, बदलेंगी शर्तें
रियल एस्टेट बिल के आने से पहले बिल्डर्स की कोशि‍श रहेगी कि वह ग्राहकों के साथ अपने कॉन्ट्रैक्ट्स में हर उस चीज को बदल दें, ताकि मामला रेग्युलेटर तक न पहुंचे. जाहिर तौर पर इस क्रम में शर्तें बदलेंगी और इस दिशा में पारदर्शिता बढ़ेगी. इसका लाभ सीधे तौर पर ग्राहक को मिलने वाला है.

2) बिल्डर्स के लिए भी लाभप्रद
अब तक रियल एस्टेट बाजार में कोई स्पष्ट रूपरेखा नहीं होने के कारण बिल्डर्स की मनमानी जगजाहिर है. लेकिन यह भी सच है कि रियल एस्टेट बिल के आने से बिल्डर्स में भी बाजार के नियमों को लेकर स्पष्टता आएगी. सीधे शब्दों में कहें तो वह क्या करना है और क्या नहीं करना है यह जान लेंगे. हां, इस कारण उन्हें अपने पूरे बिजनेस मॉडल को फिर से तैयार करना होगा.

3) मकानों की ऑफलोडिंग पर रहेगा जोर
बिल्डर्स की पहली कोशिश रहेगी कि वो पहले से बने हुए मकानों को जल्दी से जल्दी बेच दें. यानी मकानों की ऑफलोडिंग शुरू होगी. बाजार में बने हुए मकानों की संख्या बढ़ेगी और ज्यादा मकान होने की वजह से अभी मकान खरीदने का मन बना रहे ग्राहकों को लाभ मिलेगा.

4) मंदी का दौर, घटेगी कीमतें
अगले छह महीने में बाजार में अधि‍क से अधि‍क मकान बेचने पर जोर रहेगा. यह मंदी का दौर है इस कारण मकान की कीमतों में बेतहाशा कमी देखने को मिल सकती है. यानी पास में पैसा है तो मकान खरीदने का इससे बेहतर समय नहीं मिलने वाला.

5) जहां देर हो चुकी है, वहां पोजेशन पर जोर
यह समय उन लोगों के लिए भी लाभप्रद होने वाला है, जिन्हें समय से पोजेशन नहीं मिला है. क्योंकि बिल्डर्स यही चाहेंगे कि रेग्युलेटर के आने से पहले ऐसे सारे मामले निपटा दिए जाएं और कानूनी पचरों में फंसने से बचा जाए.

Courtesy – AAJ TAK

The Hindu

Good news for real estate

®The implementation of the Seventh Pay Commission recommendations this year is expected to be one of the biggest beneficiaries to the sector.

Approximately Rs.1 lakh crore is being released as part of the hike in salaries of central government employees and an additional amount would be paid as arrears (retrospective effect).

Defence personnel and pensioners too would benefit from these recommendations.While expenditures on holidays, clothing, gadgets, and buying cars are expected to be high, people are also slated to invest in real estate and work on renovating their existing houses.

Taking the cue, State Bank of India has announced cheaper home loans exclusively for central government employees, hoping that people would start investing in realty.

Going by past experiences of such pay revisions (Sixth Pay Commission was awarded about eight years ago) people have indeed invested a good portion of such largesse received in property and the real estate and banking sectors expect an encore. It is advised that those who are the beneficiaries of such schemes should first consider saving/investing in good asset classes.

It would also be a good idea if one can terminate any long-term loans or even reduce the loan burden which will again put more money in the pocket by way of lessened EMI outflow.

Prudent money management is the key.

Courtesy – The Hindu