Rest assured. None. The government agencies and the realtors have no plans to do any study of the water availability when they approve/build large housing apartments. I know an NGO who is doing a kind of mapping of areas and the water tables etc. They plan to release it to the general public, so that the people can at least know what is the chances of getting a steady supply of water (from bore wells etc.). There are some areas in Bangalore where even deep borewells have got dried up. Getting water through tankers is the only way forward.rahulm wrote:All are relying on bore water and the Godrej chap told me even after Cauvery water is made available, expect limited supplies (he said about once a week). Has the corporation or gram panchayats done any studies about ground water level usage sustainability or is it the the usual ram bharose aage dekha jaygea model? Are we using ISRO's BHUVAN-BHUJAL in town planning?
Looking for a house? Here are 10 ways Rera makes life tough for realtorsThe much-awaited Real Estate Act comes into force on Monday with a promise of protecting the right of consumers and ushering in transparency but only 13 states and union territories (UTs) have so far notified rules.
The government has described the implementation of the consumer-centric Act as the beginning of an era where the consumer is king.
Real estate players have also welcomed the implementation of the Act, saying it will bring a paradigm change in the way the Indian real estate sector functions.
The government has brought in the legislation to protect home buyers and encourage genuine private players.
The Real Estate (Regulation and Development) Bill, 2016 was passed by Parliament in March last year and all the 92 sections of the Act comes into effect from May 1.
"The Real Estate Act coming into force after a nine-year wait and marks the beginning of a new era," Housing and Urban Poverty Alleviation Minister M Venkaiah Naidu said.
The Minister said the law will make "buyer the king", while developers will also benefit from the increased buyers' confidence in the regulated environment.
"The Act ushers in the much-desired accountability, transparency and efficiency in the sector, defining the rights and obligations of both the buyers and developers," Naidu said.
The developers will now have to get the ongoing projects that have not received completion certificate and the new projects registered with regulatory authorities within 3 months from tomorrow.
Under the rules, it is mandatory for the states and UTs to set up the authority.
However, only 13 states and UTs have so far notified the rules. The states that have notified the rules are Uttar Pradesh, Gujarat, Odisha, Andhra Pradesh, Maharashtra, Madhya Pradesh and Bihar.
The Housing Ministry had last year notified the rules for five Union Territories--Andaman and Nicobar Islands, Chandigarh, Dadra and Nagar Haveli, Daman and Diu, and Lakshadweep, while the Urban Development Ministry came out with such rules for the National Capital Region of Delhi.
The other states and UTs will have to come out with their own rules.
What is RERA and how it could change your home buying experienceSeparate accounts for each project
Rera makes it mandatory for the promoters to deposit 70 per cent of the unused fund collected for a project in a separate bank account. Such funds can only be used for the purposes of construction and land cost
Required to pay compensation
Developers are required to refund or pay compensation to the allottees with an interest rate of State Bank of India’s highest marginal cost of lending rate plus two per cent, within 45 days of it becoming due. Interest rates are expected to range anywhere around 11-12 per cent
Compulsory registration of projects
The Act provides for mandatory registration of all projects with the Real Estate Regulatory Authority (Rera) in each state. Real estate agents who intend to sell any plot, apartment or building should also register themselves with this authority. Every project, measuring more than 500 square metres or more than eight apartments, will have to be registered with Rera
Punishment for delay
Under the clauses of the Act, in case of delay in transferring properties to buyers, the Real Estate Appellate Tribunal has the power to intervene and levy fines on developers within 60 days. The maximum jail term for a developer who violates the order of the appellate tribunal is around three years, with or without a fine.
Real estate agents will have to pay a fine of Rs 10,000 for violating any provisions of the Act, for each day the violation continues or face imprisonment of up to one year
No changing of building plans in the middle of development
The Act prohibits a developer from changing the plan in a project unless two-thirds of the allottees have agreed to such a change.
especially the BJP states have made modifications to the act, exempting many many projects on very flimsy grounds.JayS wrote:All the state gobermints have tried to favor the builders. Its a big mistake to keep the Regulatory power in State's hands. Central government has taken cognizance of the dilution done by many states including those of BJP. Even if Central government enforces strong rules on states, finally the regulatory authorizes will be kept toothless. Central government should have gone for a pan-India Reg body like RBI or SEBI.
But even after doing all this, the decisions/fines by such regulatory bodies are taken to the courts and are kept on stay indefinitely. I read so many times how NGT or CCI or some other body fined huge amounts big builders. But I never heard anyone actually paying a penny. Having laws and all is fine but if there is not gonna be any enforcement then its being back to the square one.
In principle, the bill is suppose to cover such cases as well. But MH govt tried to dilute the rules. They have now agreed to make it more like it supposed to be. But I have not checked MH specific rules. But given there are legal issues here (stay from Court), I am not sure how the builder will be even able to get his project registered under RERA.shravanp wrote:My cousin in Mumbai had bought an apartment a mid-high rise (~20 floors) which was under construction. It got a stay order and construction has been halted. It's been close to 8 years and builder keeps promising that it will be done next year. Will this bill help such people in restrospect?
To their credit, they have atleast notified the RERA rules within deadline. Only some 13 states and UT had notified the rules last time I check. Other states didn't do anything. I am yet to see anything on KA's proposal. They were going to do it on 30April. KA govt was trying hard to exclude all projects started before 1st May. Anyways nothing better was expected from any state government. They are the reason for the mess in RE in first place. When I first saw a couple of years ago that Centre will only be issuing guidelines and its the states who will enforce RERA, I lost all hopes then and there.chetak wrote:especially the BJP states have made modifications to the act, exempting many many projects on very flimsy grounds.JayS wrote:All the state gobermints have tried to favor the builders. Its a big mistake to keep the Regulatory power in State's hands. Central government has taken cognizance of the dilution done by many states including those of BJP. Even if Central government enforces strong rules on states, finally the regulatory authorizes will be kept toothless. Central government should have gone for a pan-India Reg body like RBI or SEBI.
But even after doing all this, the decisions/fines by such regulatory bodies are taken to the courts and are kept on stay indefinitely. I read so many times how NGT or CCI or some other body fined huge amounts big builders. But I never heard anyone actually paying a penny. Having laws and all is fine but if there is not gonna be any enforcement then its being back to the square one.
Also I hear that flats will be now be sold like FMCG products and prices will be jacked up for every "amenity" like clubhouse extra, maintenance management extra, swimming pool extra (what effing swimming pool?? It doesn't contain enough water to even wet your oysters!!) meaning that anything except the roof over your head will be extra and will put the flat in the "premium" category giving a huge chance for the builder to jack up his prices.
In a country where slums sit cheek-by-jowl next to palatial luxury -- including what’s been reported as the world’s most expensive private home -- India’s unhoused may soon become a more potent economic growth driver.
Prime Minister Narendra Modi’s drive to bring homes to the country’s 1.3 billion people, rising incomes and the best affordability in two decades will unleash a $1.3 trillion wave of investment in housing over the next seven years, according to CLSA India Pvt.
The firm expects 60 million new homes to be built between 2018 and 2024, creating about 2 million jobs annually and giving a tailwind of as much as 75 basis points to India’s gross domestic product. The volume of social and affordable housing will rise almost 70 percent to 10.5 million annually by 2024, exceeding the 33 percent increase in the premium market.
“The housing sector is at a tipping point and will be the economy’s next big growth driver,” Mumbai-based analyst Mahesh Nandurkar and his colleagues wrote in a note last week. “The catalyst is the government’s big push for an ambitious housing program.”
Sachin wrote:Was just scanning through the real estate advertisements (usually comes by truck loads on Sundays). In Bengaluru, the new trend seems to be not reducing the price, but offering "freebies" like Kitchen wood work, LCD TVs etc. etc. Is this an indication of the prices coming down?
Seen such schemes previously as well in other cities, if not in BLR. But definitely this is to maintain per sqft rate high. The builders would rather give discounts in other ways than directly reducing the per sqft rate. I have seen some builders giving credit note for discount while keeping psqft rate same.Sachin wrote:x-posted from NukkadSachin wrote:Was just scanning through the real estate advertisements (usually comes by truck loads on Sundays). In Bengaluru, the new trend seems to be not reducing the price, but offering "freebies" like Kitchen wood work, LCD TVs etc. etc. Is this an indication of the prices coming down?
So can we assume that the sq.ft prices quoted earlier was really high (i.e profits were more), but today due to the circumstances the realtors have started giving the freebies? They could have done such things earlier too, but did not bother as there were gullible buyers who would buy and then spend another few lakhs decorating the house/flat?JayS wrote:Seen such schemes previously as well in other cities, if not in BLR. But definitely this is to maintain per sqft rate high. The builders would rather give discounts in other ways than directly reducing the per sqft rate. I have seen some builders giving credit note for discount while keeping psqft rate same.
IMO this does not indicate any shift in prices overall.
Such freebies are only 1-2% of the sticker price. My experience is one can get 2-3% discounts without much bargain easily. But if you have decent understanding of real value of property in certain area and can bargain hard, without falling for tricks of the developers, then you should be able to get up to 8-10% discount on sticker price. Giving some freebies is not a big deal for them. For them the cost of same thing is less than what an purchaser would pay since they get bulk deal rates. E.g. Modular kitchen which might cost an owner 1.5lakh, a developer can get it done in half the price if he gives contract for say min 20 of kitchens at a time. There profit margins are very high and this small dent in it if they get instant money is always welcome. Since having capital in hand NOW is most important thing for them. They get capital at much higher rate so 1-2% discount is nothing for them, if they can get money now instead of one month later.Sachin wrote:So can we assume that the sq.ft prices quoted earlier was really high (i.e profits were more), but today due to the circumstances the realtors have started giving the freebies? They could have done such things earlier too, but did not bother as there were gullible buyers who would buy and then spend another few lakhs decorating the house/flat?JayS wrote:Seen such schemes previously as well in other cities, if not in BLR. But definitely this is to maintain per sqft rate high. The builders would rather give discounts in other ways than directly reducing the per sqft rate. I have seen some builders giving credit note for discount while keeping psqft rate same.
IMO this does not indicate any shift in prices overall.
And I do agree, at least in my part of the woods have seen apartment buildings just remain like skeletons for a long period of time. But these are small time builders (perhaps who just entered the scene too late).
A friend also had this to say; he bought a high rise in a Tier II city and was thinking of selling it. Till he decided to sell it, every one was talking about the 30%-40% margins he can expect to sell it. Chap also reworked his liabilities accordingly. But when it comes to the actual selling part, the expected rates came no where close. Every agent, prospective buyer had n number of reasons to happily slash down the price. Finally he got a margin of around 10%-15%. Then know a case of a chap who got a flat in a small town (Tier-III city, if it can be called that way). Got it for around 12 lakh, sold it of for 15 lakh.JayS wrote: There is a system of developers, investors and brokers who maintain high perceived demand and fuel this frenzy.
Each state is passing a version of the "dropped" central bill. The central law passed in UPA stays however assent is given to the state bill by a friendly center allowing the state provisions to override the central bill, where in conflict. Compensation levels by most states not being touched and in line with the current central law.Theo_Fidel wrote:so what happened to the Land acquisition bill. Not much in the news these days.
Hi-rise projects are overhyped and a big component (~30-40%) of the price is based on perception. Its difficult to make money in short to medium term if you buy apartment in such project, unless you have invested very early in pre-launch or launch phase, which is again a risky investment. In fact MFs have given far far better return in 5yrs post 2012, than buying an apartment in a mature market like BLR. As an example, while the appreciation in cost of apartment in big projects is an upcoming are like Kanakapura road in South BLR, has gone up by mere 50% in last 5-6yrs, that too if you had booked early in launch phase. But if you compare completed apartments there is only 20-30% appreciation. In small-medium projects with not many amenities the appreciation is again in the ballpark of 20-30% as far as my observation has been. While if you had invested the same money in Share market you would have gotten 20% CAGR from any half decent equity fund. Of coarse share markets are more unpredictable. But even some of the bond funds have given >10-12% CAGR consistently.Sachin wrote:A friend also had this to say; he bought a high rise in a Tier II city and was thinking of selling it. Till he decided to sell it, every one was talking about the 30%-40% margins he can expect to sell it. Chap also reworked his liabilities accordingly. But when it comes to the actual selling part, the expected rates came no where close. Every agent, prospective buyer had n number of reasons to happily slash down the price. Finally he got a margin of around 10%-15%. Then know a case of a chap who got a flat in a small town (Tier-III city, if it can be called that way). Got it for around 12 lakh, sold it of for 15 lakh.JayS wrote: There is a system of developers, investors and brokers who maintain high perceived demand and fuel this frenzy.
They are the largest land holders in Noida/GN/Yamuna Expressway region. Were a mid-sized (1000 Cr) EPC company in early 2000s before they started the debt fueled bing to branch out in Infrastructure sector and thermal power generation.Sicanta wrote:NCLT declares jaypee infratech insolvent : Here's what homebuyers should do
http://www.moneycontrol.com/news/busine ... 57269.html
Exactly. A good indication on where things are headed.Sachin wrote:x-posted from NukkadSachin wrote:Was just scanning through the real estate advertisements (usually comes by truck loads on Sundays). In Bengaluru, the new trend seems to be not reducing the price, but offering "freebies" like Kitchen wood work, LCD TVs etc. etc. Is this an indication of the prices coming down?
