Thursday, November 26, 2015

Development of Greater Noida

Sector 150 in G. Noida mooted as model of real estate development in NCR:
To boost infrastructure in the newly developed sectors along the Noida-Greater Noida expressway, Noida Authority has started working on several projects envisaging connectivity with Faridabad and Greater Noida. All projects along the Expressway were reviewed recently by Noida Authority, which is also taking up a project to develop the 45-meter road which will connect Kalindi Kunj to Greater Noida. This road will cut the travel time from Kalindi Kunj to Greater Noida to 10 minutes.

To improve public transport system between Noida and Greater Noida, both the authorities have chalked out a detailed plan which would provide metro connectivity between Noida and Greater Noida. The construction may start within six weeks. The decision was taken during the board meeting of Noida and Greater Noida authorities.

The CEOs of both the authorities decided to start the construction of metro rail between the two cities. Apart from that Noida Authority has also decided to extend the existing Metro link in Noida city. In the joint meeting, many developmental projects got their nod.

“We are re-assessing the Detailed Project Report (DPR) of Metro line between Noida and Greater Noida and the tenders will be floated after the State Government agrees to the proposal and clears it. Delhi Metro Rail Corporation (DMRC) will carry out the project work while the cost will be borne by the twin authorities.

Chief Executive Officer (CEO) of Noida Sanjeev Saran said that they will extend the Metro line from Noida City Centre to Sector 62. The Metro rail would start from Botanical Garden Metro station and would reach Greater Noida via Sector 32, 51, 83, 101, 143, 147 (Noida) and Knowledge Park, Pari Chowk (Greater Noida). The total length of the proposed extension is 29.7 kilometres and there will be 22 stations on this line. Whereas the existing Metro rail link will be extended upto six kms between Noida City Centre to Sector 62.

The CEO said that Noida Authority is in the process of augmenting the existing bus fleet of City Bus Service and for this authority would add 170 buses in its fold. For this Noida Authority would provide 40.5 crore to the State Transport Department.  Out of 170 buses, 48 buses will be in the semi low-floor category while feeder buses will be made available at all metro stations of Noida city.

The CEO also announced to make one MW solar plant on the model adopted by Gujarat Government and the authority will provide five acres of land to the concerned department. Authority will also bear the cost of the entire project and the plant are planned to make the region more environment friendly.

Wednesday, November 25, 2015

The Smart City Race

                                                                                      Evaluation criteria for Smart City plans firmed up:
Based on credibility, feasibility and citizen engagement, Smart City plans will be evaluated by the Urban Development Ministry for selection of first batch of 20 cities after detailed consultation with states and urban local bodies (ULB).

New exit rules may attract private players to smart cities:
Easier rules will come as a lifeline for fund-starved developers engaged in private township projects, New Delhi, with just 3% of NCT population, in Smart City race: The New Delhi area includes government offices, houses of officials and ministers, diplomatic missions, Rashtrapati Bhavan, Parliament House and SC. Ghaziabad has been selected in the initial phase of the Central government’s Smart City project and a consultant will prepare a detailed project report to move Ghaziabad into the second phase of the scheme.

‘Green building costs just 10% higher than conventional ones’: With Nagpur's name included in list of 'Smart Cities' in India, the city needs to conform to its strict guidelines to become eligible for the grants under it. One of the conditions is to have many 'green buildings' that are not only cost effective in long run but also helps owners to maintain good health, apart from helping to preserve environment by saving light and water.

Maharashtra wants Pimpri Chinchwad name in Smart City Mission list:
The state government had clubbed Pune and Pimpri Chinchwad while selecting 10 cities from the state. Lower Parel has edge in Smart City race:
The Smart City detailed project report for Mumbai, which is being prepared by the Brihanmumbai Municipal Corporation (BMC), is in its final stages, and senior civic officials said Lower Parel in South Mumbai was one of the strongest contenders for area-based development. Nariman Point, Andheri (W) and Fort are also being considered.

Dharamsala to be developed as Smart City:
The state government was mulling to develop Dharamsala into a 'Smart City' as it is an international tourist destination of the country.

The race between Rae Bareli and Meerut to get selected under the Centre’s Smart City Mission has gained impetus, with both the Rae Bareli MP and Congress president Sonia Gandhi’s office and BJP leaders from Meerut urging the UP government to take up their cause.
After the Union Urban Development Ministry announced that there was a tie between Rae Bareli and Meerut for the 13th ‘Smart City’ from UP and the state government was asked to take a final call, BJP leaders and Sonia’s office have both approached the government.

Let us see what the final list adds and what it deletes.

Friday, November 20, 2015

Real estate Regulatory bill

Real estate bill- All changes by Rajya Sabha panel accepted: The government is clearing the decks for passage of the crucial real estate bill in the forthcoming winter session of Parliament. The urban development ministry has accepted all the amendments proposed by a parliamentary committee and is readying to move the amended legislation for Cabinet approval and finally push it through Parliament.

Highlights of Real Estate Bill: 
All developers will have to register their projects with a real estate regulator. All states across the country will have one regulator which will settle disputes and impose compensation.
Neither housing nor commercial projects can be launched unless it got registered with the real estate regulator of the state. If the bill is passed in the Parliament, the ongoing projects, which are yet to receive completion certificates, will also have to abide by the same rule. Developers can't even advertise of their projects without prior registration with the real estate authority.
Developers cannot sell properties by showcasing the super area. Instead, the developers will have to disclose the carpet area before putting any advertisements.

The regulator authorities will monitor layout plans which should be declared during the time of registration of the project. Developers need to mention all details of contractor, architect, structural engineer, etc. associated with the project. Any buyer will get all information related to the project from the real estate regulator authorities. At least two-third buyers' consent to be needed if the developer wants to alter plans, structural designs and specifications of the building.

Developers will be responsible for structural defects and they need to refund money in cases of default. Any third party or broker, who are interested to sell flats or an apartment, will be asked to register their names with the regulatory body. The brokers also will be penalised for non-compliance.

Developers will have to pay refund with interest to buyers in case they fail to deliver projects on time. Promoters will have to deposit 50 per cent of the amounts collected from buyers in a separate bank account within 15 days. It will ensure that they will complete the project on time. The real estate regulator can impose penalty on developers if they violate any rules set by the authority. Projects can be de-registered and penalties might be imposed on the developer in such cases. Developers may have to pay a fine up to 10 per cent of project cost. Misinformation will attract fine of 5 per cent of project cost.

What are the changes/amendments made in the bill by NDA? Congress leader Ajay Maken in his blog highlighted a few points which actually irked Rahul Gandhi and other Congress leaders. Here are the points, which according to Congress, are problematic amendments to the bill. UPA had set the threshold of 70% of buyers' money which should be kept aside in a separate bank account by developers. The 70% money was to be used for construction cost. Now NDA reduced the amount and made it to 50%. In UPA's bill, builders were not allowed to make any changes in the plan of the project once it got clearance from the regulator. But now, they can make 'minor altercations'. Unlike the present bill, the previous bill had a clear definition of 'carpet area'. In NDA's bill, 'carpet area' definition replaced the definition of 'rentable area' which is used by the National Building Code. NDA's bill has a clause which may help developers in case of any delay of the project. Builders will not face penalties for delays due to "issue of completion certificate, approvals etc." Ajay Maken said that above mentioned clause can be misused easily by the developers.

Thus, even though the Real Estate Regulatory Bill is the step in the right direction, the government should put effort to bring in more clarity to make it really work for customers and developers alike.

Wednesday, November 18, 2015

Affordable Housing- Mumbai

Land identified in Mumbai Metropolitan Region (MMR) for affordable housing: The Maharashtra Housing and Area Development Authority (Mhada) has identified land parcels spread over 1,100 acres across Mumbai Metropolitan Region (MMR) for developing affordable housing projects. Maharashtra housing body earmarks 1,100 acres for affordable housing. The land parcels are in Thane, Raigad and newly formed district Palghar, which includes Vasai & Virar. Mumbai Metropolitan Region includes cities of Mumbai, Thane & Navi Mumbai.

After the decision of state government, about 30 developers have submitted proposals to build low-cost houses in the Mumbai Metropolitan Region along with government-owned agency.

Big names, with advanced technology in construction sector, would be roped in by the state government to construct five lakh affordable houses in Mumbai, in the next five years, fulfilling Prime Minister Narendra Modi's dream of providing affordable houses by 2022. Once these houses are ready, the ever-soaring cost of living in Mumbai shall automatically start sliding.

The land cost, the bulk of expenditure for any real estate project, will be minimum in this case as these land parcels will be allotted by the government to the state housing authority. The process of planning and drawing of a roadmap for these projects will be initiated after the land allotment.

The state minister of housing, labour and mines Prakash Mehta had last month announced that Maharashtra is considering opening up land parcels under the no-development zones as well as plots belonging to Indian defence personnel in an effort to build affordable houses in Mumbai. The Maharashtra government has already entered into an agreement with the defence ministry that will allow land under its control in Mumbai to be used for mass housing.

Friday, November 13, 2015

Govt Removes FDI Restrictions

Realty set for big revival as govt removes FDI restrictions:
The government recently removed all restrictions on foreign direct investments into the real estate and construction sector except for a three-year lock-in period for select projects, in a major boost to the cash-starved sector at this stage. This will have a huge positive impact on the housing sector as a whole, but much more so on the affordable housing segment, which was so far not a beneficiary of FDI in any significant manner. That is because the government has done away with restrictions on size and minimum capitalisation, meaning that FDI can now be brought into the construction sector in any amount and for any size of project. Also, there will now be no lock-in period for FDI investments into hotels and resorts, hospitals, SEZs, educational institutions, old age homes and NRI investments. The restriction that funds had to be brought into the country within six months of commencement of business has also been removed.

Bengaluru is top destination for real estate investments:
Nearly 13 per cent Rs 44,450 crore that PEs have invested in property market from 2013 have come to the city.

UP News:
Airport line tech to speed up work on Noida Metro:
The Delhi Metro Rail Corporation (DMRC) has tested and lifted the first 'U-girder', or U-shaped support beam, for the Noida-Greater Noida Metro alignment, and will install the first viaduct on the 29.9km corridor by the end of the year.
Girders directly bear the load of Metro tracks and the use of U-shaped ones have helped speed up construction work. The U-girders measure 27 metres in length which allows DMRC to use only two spans to install one segment of viaduct, whereas several spans of normal girders would have been required for installing the same viaduct. This technology was used by DMRC for the Airport line and the Badarpur-Faridabad corridor.