Indian Real Estate Sector

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Re: Indian Real Estate Sector

Postby asgkhan » 02 Mar 2019 08:29

hgupta wrote:
asgkhan wrote:https://ibb.co/VHYNCg6

Architect sketch. House is 95% accurate.


Very nice. I like the design. Is it central ACed or do you use room AC units to cool each room individually? Have you ever done energy efficient design analysis for your house?


Sir,

Those are all western concepts. Energy concerns are first world problems. Here in Desh, avoiding getting r@ped from all the shady contractors will be the highest priority.

I do have a solar water heater, BESCOM is kind enough to give me 50 RS subsidy on the monthly bill.RWH is present but I don't have the space for a separate sump. So it is dummy.

I don't need a/c as I am in a heavy wooded area. Fan is sufficient.

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Re: Indian Real Estate Sector

Postby Sachin » 02 Mar 2019 13:47

asgkhan wrote:Construction cost:60,00,000
...
Total: 92,00,000

You have omitted the land cost :). Did you have the land already in hand? An kind of "independent house"/villa is also a dream of mine; so just gathering as much as information I can.

I don't need a/c as I am in a heavy wooded area. Fan is sufficient.

Can you let me know the area where this would be? I am not asking for an exact address. And what would be your primary mode of commute? And worst case I guess, you can have some provisions for AC? Like high power plug points etc.?

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Re: Indian Real Estate Sector

Postby asgkhan » 02 Mar 2019 14:43

Sachin wrote:
asgkhan wrote:Construction cost:60,00,000
...
Total: 92,00,000

You have omitted the land cost :). Did you have the land already in hand? An kind of "independent house"/villa is also a dream of mine; so just gathering as much as information I can.

I don't need a/c as I am in a heavy wooded area. Fan is sufficient.

Can you let me know the area where this would be? I am not asking for an exact address. And what would be your primary mode of commute? And worst case I guess, you can have some provisions for AC? Like high power plug points etc.?


Land cost me around 1.5 crores. Total sqft is around 3000 sq ft. Half for me and other half bifurcated to my sister.

House has 15 AMP switch in every switch board. 3.5 kVA with 4 batteries as backup. All cabling done for DTH, fibre optic cable, cctv and a/c points.

Even the tanker can supply water to my house via a external pipe.

Skylights in hall of both floors and all bathrooms.Sitouts with artificial grass and Sira stone benches. Cantilever steps and wooden flooring in first floor hall.

Those are some of the small features.

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Re: Indian Real Estate Sector

Postby asgkhan » 02 Mar 2019 14:46

I am near a small layout in Bommanahalli. commute is not a problem as my office timings are 6 to 3. Many small internal roads to avoid traffic jams.

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Re: Indian Real Estate Sector

Postby srin » 02 Mar 2019 18:51

asgkhan wrote:Those are all western concepts. Energy concerns are first world problems. Here in Desh, avoiding getting r@ped from all the shady contractors will be the highest priority.


Actually, wanted to ask about that. How much did the contractor exceed his initial estimate wrt time and money ?

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Re: Indian Real Estate Sector

Postby asgkhan » 02 Mar 2019 21:00

srin wrote:
asgkhan wrote:Those are all western concepts. Energy concerns are first world problems. Here in Desh, avoiding getting r@ped from all the shady contractors will be the highest priority.


Actually, wanted to ask about that. How much did the contractor exceed his initial estimate wrt time and money ?

For my dumb luck I managed to get a contractor willing to work with the architect for the proposed budget. We 3xceeded the budget by 1 lakh. But we were on time. Our agreement was that he will provide the materials and execute the work as per the instructions of the architect.we followed the BOQ concept with 10 % fee for the contractor.

I interviewed around 6 to 8 contractors but chose him because of his willingness to work with the architect. We are good friends now. I thank the almighty that both architect and contractor were keeping my welfare in mind and were conscious of my budget.

I have nothing but gratitude and praise for them.

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Re: Indian Real Estate Sector

Postby disha » 03 Mar 2019 07:15

srin wrote:Begs the question - why do houses in US indeed have sloped roofs ?


Most of the residential construction in US is wood (plywood, laminates, sheet board etc). Part of the reason is that wood is abundant coming from Canada and Pacific Northwest. Another is that there is an entire ecosystem of lumber producers to distributors to retailers and to the standard. You can go to any shop in any part of america (even to a remote shop) and can find either a supplier or a user given the item specification. In essence, building supplies are very very cheap compared to the cost of the contractor and architect.

All the residential housing architects can reuse their calculation models. Given an architecture diagram and photos, one can get a general contractor to give estimates electronically for example. So deviations from the architecture tend to get costly.

Also most of the US (90%) sees some form of snow or rain. Water and wood do not go together, hence it is always a risk to create a roof which is of wood! And only in very dense urban areas one would want to use the roof as an outdoor space.

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Re: Indian Real Estate Sector

Postby disha » 03 Mar 2019 07:17

asgkhan wrote:https://ibb.co/VHYNCg6

Architect sketch. House is 95% accurate.


Congratulations on your new home. It is modern and chic and well designed.

Condolences on your mother passing away. At least she knows that you will have your own home. I understand the feeling which one has have when one's parents do not get to see a home they can call their own.

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Re: Indian Real Estate Sector

Postby asgkhan » 04 Mar 2019 07:32

Thanks Disha-sempai.

Yes, not a day goes by without remembering the conversations of her dreams to live in a modern house.

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Re: Indian Real Estate Sector

Postby Vips » 09 Apr 2019 02:02

Mukesh Ambani sets out to change the face of Indian cities, first project already on.

The new ace up Mukesh Ambani's sleeves may be about to reveal itself. And it could well be the urban infra game changer India was waiting for.
Reliance Industries is tying up the last loose ends in its blueprint for setting up a megacity in the vicinity of Mumbai, a Business Standard story has revealed.

It is going to be Reliance Group's single biggest "projects within a project" initiative, where every component of a project will be a project in itself, BS quoted an inside source as saying.

Ambani's megacity will be developed on the lines of Singapore. It will have airport, port and sea link connectivity. Once completed, the city will accommodate over half a million inhabitants and thousands of businesses, the BS story said.

The project is expected to draw in as much as $75 billion in investments over the next decade.

Changing the urban infra game
Ambani is likely to roll out his new brainchild on a massive, never-before-seen scale. Analysts say it could be a Jio redux — the mega 2016 launch that had all India gasping in wonder in its wake. In terms of affordability and quality of product, Ambani's mega city could match the Jio phenomenon, experts have said.

By all measures, this new Reliance project is likely to script a new chapter for India, primarily because it could recast the whole urban infra scene.

Mumbai may be a changed place after this megacity comes, said the story. It will likely lead to reverse migration as property prices in the new city will be lower than in Mumbai, it added quoting a top real estate analyst. :shock:

The most significant aspect of this project is that Reliance will not only develop the project but also will run the administration after the city comes up, says the story. This will be possible due to the 'special planning authority' licence that Reliance has been handed for the landmark project.

This licence, apart from reducing red tape and transaction time, will enable Ambani to sharply — even dramatically — bring down the costs involved, says the report.

Project history: The Dhirubhai link
It was Dhirubhai Ambani, the legendary founder of the Reliance Group, who had first come up with the idea of setting up a world-class city in Navi Mumbai. He had thought of a project on these lines as early as the 80s — a project for linking South Mumbai and Navi Mumbai by road. The plan, had it succeeded, would have decongested Mumbai long back, BS quoted the source as saying.

Reliance had announced early last month about its leasing of 4,000 acres of land from Navi Mumbai SEZ (NMSEZ) for an initial payment of Rs 2,180 crore to develop an economic hub on a global scale. NMSEZ had been given this land in 2006 to develop a world class SEZ

NMSEZ is promoted by Mukesh Ambani, Jai Corp India, SKIL Infrastructure Ltd and City and Industrial Development Corp (CIDCO). According to a PTI story, CIDCO holds 26 per cent stake in NMSEZ, while the rest is held by Ambani, Jai Corp promoted by Anand Jain and Nikhil Gandhi's SKIL Infrastructure.

In 2005, Ambani joined forces with Nikhil Gandhi who had been buying land since 2000 with a view to setting up an SEZ on the lines of China's mega SEZs. According to the BS story, the Tata Group was also interested in joining hands with Gandhi but was eventually outwitted by Ambani.
Then, in 2018, under the Maharashtra Industrial Policy, the state government permitted SEZs to migrate to Integrated Industrial Area and make available the land for industrial units. NMSEZ later applied and received the consent to convert the SEZ into the Integrated industrail area (IIA)as per the policy


Incredible - Mukesh Ambani enters a new sector with aim to to dominate by first making sure that all the rules are re-written to favor him and thus ensure's a full proof success for his venture.

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Re: Indian Real Estate Sector

Postby Paul » 14 Apr 2019 18:51

Tips on negotiating for an apartment with a builder


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Re: Indian Real Estate Sector

Postby UlanBatori » 18 Nov 2019 23:11

I have a pooch. General terms first, then India vs. US answers.
Say Coujin A signs a Listing Agreement with Broker/Agent M. Property (in Yoo Ess) is listed on Multiple Listing Sarbhij in Yoo Ess. After some time, A decides that M is no good. Asks to terminate agreement and remove the listing.

It is understood that if A sells the property to anyone whom M showed the property, within the remaining listing period + 3 months, then A owes commishun to M on top of any other commishun paid to anyone else.
Pooch: How does A know who is on this list?

a) Doesn't M have to provide said list?
b) What about people who (M claims) to have "seen" the listing while posted on the 'Net but did not see in person, never been inside the property?
c) What about ppl who (M claims) to have seen the property while walking down the street when M's sign was on the property?

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Re: Indian Real Estate Sector

Postby Rishirishi » 21 Nov 2019 05:23

UlanBatori wrote:I have a pooch. General terms first, then India vs. US answers.
Say Coujin A signs a Listing Agreement with Broker/Agent M. Property (in Yoo Ess) is listed on Multiple Listing Sarbhij in Yoo Ess. After some time, A decides that M is no good. Asks to terminate agreement and remove the listing.

It is understood that if A sells the property to anyone whom M showed the property, within the remaining listing period + 3 months, then A owes commishun to M on top of any other commishun paid to anyone else.
Pooch: How does A know who is on this list?

a) Doesn't M have to provide said list?
b) What about people who (M claims) to have "seen" the listing while posted on the 'Net but did not see in person, never been inside the property?
c) What about ppl who (M claims) to have seen the property while walking down the street when M's sign was on the property?


It is a trust issue. If you pull the property off the market or sack the agent, there is not much he can do. He wont take you to court in India (thanks for the lousy legal system). In the US I do not know. I guess, it depends on the type of agreament. If you did find a buyer, you could simply ask him to wait for 3 months.

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Re: Indian Real Estate Sector

Postby Sachin » 21 Nov 2019 09:41

Karnataka RERA tightens rules for property developers
Some points:-
1. Developers need to register with RERA and also prominently show the registration # of the project.
2. No gimmick like "information is likely to change" in advertisements.
3. Names of land owners/developers details and their share details also to be recorded with RERA
4. A copy of the written agreement or arrangement between landowner/promoter which clearly specifies and details the rights and shares of each promoter should be uploaded on the KRERA website
5. Land owner, promoter & co will have to fight cases over the title of the land (if that arises; and that is fairly common in Bengaluru)

In overall some thing for the betterment in real estate sector.
URL: www.rera.karnataka.gov.in

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Re: Indian Real Estate Sector

Postby asgkhan » 05 Jan 2020 15:02

Sachin wrote:Karnataka RERA tightens rules for property developers
Some points:-
1. Developers need to register with RERA and also prominently show the registration # of the project.
2. No gimmick like "information is likely to change" in advertisements.
3. Names of land owners/developers details and their share details also to be recorded with RERA
4. A copy of the written agreement or arrangement between landowner/promoter which clearly specifies and details the rights and shares of each promoter should be uploaded on the KRERA website
5. Land owner, promoter & co will have to fight cases over the title of the land (if that arises; and that is fairly common in Bengaluru)

In overall some thing for the betterment in real estate sector.
URL: http://www.rera.karnataka.gov.in



So many apartments in 30%-40% completed stage. The real estate scene is dead. In my area, hardly any buyers for the apartments. 7/8 years old apartments going for 70 lakh plus.

15 year old apartment going for 50 lakhs plus. Crazy.....

RERA is killing the fly by night operators, some of these guys who got into the scene 20 years back, planning their pump and dump schemes, have retired after suffering huge losses.

RERA and demonetisation has been like chemotherapy to the industry.

:)

Land values keep rising astronomically, immune to anything btw.

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Re: Indian Real Estate Sector

Postby tandav » 22 Jan 2020 11:23

Vips wrote:Mukesh Ambani sets out to change the face of Indian cities, first project already on.

The new ace up Mukesh Ambani's sleeves may be about to reveal itself. And it could well be the urban infra game changer India was waiting for.
Reliance Industries is tying up the last loose ends in its blueprint for setting up a megacity in the vicinity of Mumbai, a Business Standard story has revealed.

It is going to be Reliance Group's single biggest "projects within a project" initiative, where every component of a project will be a project in itself, BS quoted an inside source as saying.

Ambani's megacity will be developed on the lines of Singapore. It will have airport, port and sea link connectivity. Once completed, the city will accommodate over half a million inhabitants and thousands of businesses, the BS story said.

The project is expected to draw in as much as $75 billion in investments over the next decade.

Changing the urban infra game
Ambani is likely to roll out his new brainchild on a massive, never-before-seen scale. Analysts say it could be a Jio redux — the mega 2016 launch that had all India gasping in wonder in its wake. In terms of affordability and quality of product, Ambani's mega city could match the Jio phenomenon, experts have said.

By all measures, this new Reliance project is likely to script a new chapter for India, primarily because it could recast the whole urban infra scene.

Mumbai may be a changed place after this megacity comes, said the story. It will likely lead to reverse migration as property prices in the new city will be lower than in Mumbai, it added quoting a top real estate analyst. :shock:

The most significant aspect of this project is that Reliance will not only develop the project but also will run the administration after the city comes up, says the story. This will be possible due to the 'special planning authority' licence that Reliance has been handed for the landmark project.

This licence, apart from reducing red tape and transaction time, will enable Ambani to sharply — even dramatically — bring down the costs involved, says the report.

Project history: The Dhirubhai link
It was Dhirubhai Ambani, the legendary founder of the Reliance Group, who had first come up with the idea of setting up a world-class city in Navi Mumbai. He had thought of a project on these lines as early as the 80s — a project for linking South Mumbai and Navi Mumbai by road. The plan, had it succeeded, would have decongested Mumbai long back, BS quoted the source as saying.

Reliance had announced early last month about its leasing of 4,000 acres of land from Navi Mumbai SEZ (NMSEZ) for an initial payment of Rs 2,180 crore to develop an economic hub on a global scale. NMSEZ had been given this land in 2006 to develop a world class SEZ

NMSEZ is promoted by Mukesh Ambani, Jai Corp India, SKIL Infrastructure Ltd and City and Industrial Development Corp (CIDCO). According to a PTI story, CIDCO holds 26 per cent stake in NMSEZ, while the rest is held by Ambani, Jai Corp promoted by Anand Jain and Nikhil Gandhi's SKIL Infrastructure.

In 2005, Ambani joined forces with Nikhil Gandhi who had been buying land since 2000 with a view to setting up an SEZ on the lines of China's mega SEZs. According to the BS story, the Tata Group was also interested in joining hands with Gandhi but was eventually outwitted by Ambani.
Then, in 2018, under the Maharashtra Industrial Policy, the state government permitted SEZs to migrate to Integrated Industrial Area and make available the land for industrial units. NMSEZ later applied and received the consent to convert the SEZ into the Integrated industrail area (IIA)as per the policy


Incredible - Mukesh Ambani enters a new sector with aim to to dominate by first making sure that all the rules are re-written to favor him and thus ensure's a full proof success for his venture.


Didn't JayPee group try this in NOIDA and now the company is bankrupt. Trying to do anything quality oriented in Indian Govt Sector (policy/land/property) is a proven path to wealth destruction. So far many politicians and bureaucrats have made money in real estate / govt is by allowing encroaching on public property, creating legal issues, providing piss poor infra, corruption and creating slums vote banks. This has increased the cost of land acquisition and the cost to legal property owners. Its not a surprise that at the level of development India has the worst public infra and systems.

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Re: Indian Real Estate Sector

Postby tandav » 22 Jan 2020 11:28

UlanBatori wrote:I have a pooch. General terms first, then India vs. US answers.
Say Coujin A signs a Listing Agreement with Broker/Agent M. Property (in Yoo Ess) is listed on Multiple Listing Sarbhij in Yoo Ess. After some time, A decides that M is no good. Asks to terminate agreement and remove the listing.

It is understood that if A sells the property to anyone whom M showed the property, within the remaining listing period + 3 months, then A owes commishun to M on top of any other commishun paid to anyone else.
Pooch: How does A know who is on this list?

a) Doesn't M have to provide said list?
b) What about people who (M claims) to have "seen" the listing while posted on the 'Net but did not see in person, never been inside the property?
c) What about ppl who (M claims) to have seen the property while walking down the street when M's sign was on the property?



Email and Call records, signup sheets during open house should be sufficient for M to prove his case. Contract enforcement in US is generally stronger than in India, where the agreement is not worth the paper it is signed on, people work on trust and assume that if agreements are broken then there is payback via karma NOT the law.

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Re: Indian Real Estate Sector

Postby Vayutuvan » 23 Jan 2020 02:43

tandav wrote:Didn't JayPee group try this in NOIDA and now the company is bankrupt.


Lavasa is another failed project. It seems that was due to a political fight between Pawar and S. Gandhi.

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Re: Indian Real Estate Sector

Postby Sachin » 16 Mar 2020 10:04

A case from South East Bangalore. Looks like the unplanned real estate growth on the eastern part of the city has now started opening up problems. At least 5 years back there were opinions by experts that areas like Outer Ring Road, Sarjapur Road are going to have water problems as the water bed even deep below the surface would dry up.
Water tanker strike in east Bengaluru till March 20 has citizens worried
Tech corridors to face heat as water tankers call strike
Elangovan Kulandaivelu, a resident of Whitefield, said the water scarcity in east Bengaluru was the direct result of an unplanned and unregulated development. “Officials give building permissions though they can’t provide water. They will collect property tax but won’t provide basic amenities. These are people contributing to the economy of the state but their needs are not met,” he said, adding that higher awareness and enforcement were needed to ensure the implementation of sustainable measures like rainwater harvesting.

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Re: Indian Real Estate Sector

Postby sum » 16 Mar 2020 13:41

What a pathetic situation with zero solutions in sight.

Literal sub-Saharan situation with even zero level basic needs being absent in the "IT belt" of India

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Re: Indian Real Estate Sector

Postby asgkhan » 22 Mar 2020 10:52

Sachin wrote:A case from South East Bangalore. Looks like the unplanned real estate growth on the eastern part of the city has now started opening up problems. At least 5 years back there were opinions by experts that areas like Outer Ring Road, Sarjapur Road are going to have water problems as the water bed even deep below the surface would dry up.
Water tanker strike in east Bengaluru till March 20 has citizens worried
Tech corridors to face heat as water tankers call strike
Elangovan Kulandaivelu, a resident of Whitefield, said the water scarcity in east Bengaluru was the direct result of an unplanned and unregulated development. “Officials give building permissions though they can’t provide water. They will collect property tax but won’t provide basic amenities. These are people contributing to the economy of the state but their needs are not met,” he said, adding that higher awareness and enforcement were needed to ensure the implementation of sustainable measures like rainwater harvesting.


Around a decade back, survey was done in East Bangalore and was decided that 110 villages will be adopted by BWSSB and Kaveri water will be provided to the heathens.

What went wrong:

1. Population density has increased 10x.
2. Original allotment of 5MPLD is not sufficient.
3. The allotted water was diverted to other areas in need due to delays in starting the project. Now when the water is re-allocated back, influential goons are creating nuisance.
4. BWSSB is flush with money, they have given the contract in L&T, the engineers are fcuking lazy. I have attended multiple meetings with RWAS and BWSSB. The chalta hai attitude nearly caused a lynching of a BWSSB engineer, because of the delays and nuisance he caused by his lethargy.
5. The apartments have too many violations. They are unable to produce the documents required by BWSSB.
6. Corruption. BWSSB assigned plumbers are minting money, charging 1 lakh per connection.
7. On ORR, they have to build reservoirs and STPs, where is the land ? That project is planned for the next 5 years.


Lot more stories. I will share some down the line.

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Re: Indian Real Estate Sector

Postby CalvinH » 23 Mar 2020 02:36

Vayutuvan wrote:
tandav wrote:Didn't JayPee group try this in NOIDA and now the company is bankrupt.


Lavasa is another failed project. It seems that was due to a political fight between Pawar and S. Gandhi.


We have too much political interference and politicians (big and small) and bureaucrats trying to claim the part of the pie when the project starts to look successful. That tanks large scale projects when the builder lose political patronage (due to change in government or other reasons). In Pakistan projects like DHA and builder like Baharia have developed successful large scale projects with comprehensive plans because they have backing of the establishment (that provide them first use of resources too). Check some videos of their mini-cities and developments.We lack similar projects. Self contained mini-cities run by private corporations.

Jaypee had a great chance in Noida as they got the land cheap but they floundered it because of their greed....their story is sad.

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Re: Indian Real Estate Sector

Postby tandav » 24 Mar 2020 12:24

A very large amount of problems can be resolved by simply making legislation that Land is not owned by anyone (this was historically the case in India)... everyone pays 1-2% of circle rate /year as property tax. People of India owns the land and can by a democratic exercise acquire the land for any public purpose after a carefully defined process that will have prior judicial approval. What people paid as Land Acquisition cost in *white* will be available as a input credit for Property Tax. Any Capital investment that a leaser made on that land (in terms of setting up house/factory etc) will be paid back with interest of 18% if it cannot be moved. Or better all capital investments have to be movable / dis-assemblable structures made of recyclable materials (Steel, Wood, Glass, Earth, Stone) or prefab RCC structures that can be assembled elsewhere

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Re: Indian Real Estate Sector

Postby Vayutuvan » 26 Mar 2020 02:31

CalvinH wrote:We lack similar projects. Self contained mini-cities run by private corporations.
...
Jaypee had a great chance in Noida as they got the land cheap but they floundered it because of their greed....their story is sad.


In case of Lavasa, INC held up the project saying there are some environmental issues to be resolved. We all know 'Jayanthi Natarajan' fiasco under MP Rahul Gandhi.

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Re: Indian Real Estate Sector

Postby Vayutuvan » 26 Mar 2020 02:34

tandav wrote:A very large amount of problems can be resolved by simply making legislation that Land is not owned by anyone (this was historically the case in India)...


AFAIK, most coop housing societies in Mumbai, especially Navi Mumbai are given the land on a 99 year lease basis.

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Re: Indian Real Estate Sector

Postby Rishirishi » 31 Mar 2020 02:04

tandav wrote:A very large amount of problems can be resolved by simply making legislation that Land is not owned by anyone (this was historically the case in India)... everyone pays 1-2% of circle rate /year as property tax. People of India owns the land and can by a democratic exercise acquire the land for any public purpose after a carefully defined process that will have prior judicial approval. What people paid as Land Acquisition cost in *white* will be available as a input credit for Property Tax. Any Capital investment that a leaser made on that land (in terms of setting up house/factory etc) will be paid back with interest of 18% if it cannot be moved. Or better all capital investments have to be movable / dis-assemblable structures made of recyclable materials (Steel, Wood, Glass, Earth, Stone) or prefab RCC structures that can be assembled elsewhere


Owning land is one of the greatest wealth creators. Property is used as collateral and also help in expanding businesses.
Normally the land cost reflects the earnings on it. But in India, with all that black wealth, land is used as bank to park money. This way land becomes a major cost factor in starting up businesses. Getting rid of black money is a challenge by itself. But perhaps digital land registries can make it more transparent. Also mandatory auctions of land can help. Basically the people would have to make bids on an open system, and the property would go to the highest bidder. This will eliminate the possibility to park black money in land.

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Re: Indian Real Estate Sector

Postby vimal » 31 Mar 2020 06:05

Rishirishi wrote:
tandav wrote:...
Any Capital investment that a leaser made on that land (in terms of setting up house/factory etc) will be paid back with interest of 18% if it cannot be moved. Or better all capital investments have to be movable / dis-assemblable structures made of recyclable materials (Steel, Wood, Glass, Earth, Stone) or prefab RCC structures that can be assembled elsewhere


Owning land is one of the greatest wealth creators. Property is used as collateral and also help in expanding businesses.
Normally the land cost reflects the earnings on it. But in India, with all that black wealth, land is used as bank to park money. This way land becomes a major cost factor in starting up businesses. Getting rid of black money is a challenge by itself. But perhaps digital land registries can make it more transparent. Also mandatory auctions of land can help. Basically the people would have to make bids on an open system, and the property would go to the highest bidder. This will eliminate the possibility to park black money in land.


In my state all the land records are digitised. I can go to the government website and see any record.

tandav
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Re: Indian Real Estate Sector

Postby tandav » 31 Mar 2020 15:21

The issue is how to acquire land for public purposes?
Second I feel property tax must be collected at a higher rate to ensure land is used productively

Mollick.R
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Re: Indian Real Estate Sector

Postby Mollick.R » 31 Mar 2020 19:16

Alpha Invesco, i like their in depth industry and sector specific analysis quite much.

recently i found this one in same site.

Why is Real Estate in India So Expensive?
By Zain Iqbal / Articles, Industry & Sector Reports, Real Estate / Indian Real Estate Market

When you benchmark an asset as being expensive, we have to ask relative to what? Indian real estate is expensive and it is only getting costlier despite demonetization and RERA.

The metric which indicates if real estate in a nation is expensive is PRICE to INCOME ratio. Price in the numerator is price of a dwelling and Income is national average income of the nation.

To understand the PRICE to INCOME ratio, please read the definition-

Price to Income Ratio is the basic measure for apartment purchase affordability (lower is better). It is generally calculated as the ratio of median apartment prices to median familial disposable income, expressed as years of income (although variations are used also elsewhere). Our formula assumes and uses:

Net disposable family income, as defined as 1.5 * the average net salary (50% is assumed percentage of women in the workforce)
Median apartment size is 90 square meters or 968 sq ft.
Price per square meter (the formula uses) is the average price of square meter in the city center and outside of the city center.

Price to Income Ratio in India [ IMAGE ]

India had price to income ratio of 7.69 in 2009 and since then it has inched up and it has already touched 11.38 in 2020. 2018 onwards the price to income ratio has rapidly risen from 9.73 to 11.38.

In simple worlds, if a person wants to buy a house today in 2020, he will spent 11.38 lacs on the purchase when his median disposable family income is 1 lac only or it will take the person 11.38 years at current median disposable family income to buy the house.

Let’s look at other countries and try to gauge housing affordability................

the article have embedded images, read full article here.............

https://www.alphainvesco.com/blog/real-estate-in-india-expensive/

isubodh
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Re: Indian Real Estate Sector

Postby isubodh » 31 Mar 2020 22:37

tandav wrote:The issue is how to acquire land for public purposes?
Second I feel property tax must be collected at a higher rate to ensure land is used productively


There are practical issues with high property tax rates :
- recovery is difficult, can't throw out people out for not paying property tax (inhumane )
- high property tax makes houses un-affordable for tenants, as all cost + margin is passed on to them.
- optimum use means more commercial use, putting lot of pressure on supporting infra.

Rishirishi
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Re: Indian Real Estate Sector

Postby Rishirishi » 08 Apr 2020 02:03

How to make every Indian a house owner.

Example of a scheme.
Preconditions:
-Each adult is only entitled to enter the scheme once.
-The RBI interest rate is 4,4% (currently)
-Construction cost is Rs 3000 per sq meter.
-Each flat unit pays 5 lacks towards development of infrastructure.
-Individual is required to have 2 lacs of capital.

A flat size of 800Ssq ft will cost rs 29 lacs.

The public use the flat as collateral and get the rest as a loan at RBI rate+0.25% admin fee. Total interest rate is 4,69% . The loan is 7 years down payment free. after that 25 years with down payment (with 7 years inflation, the down payment will be easy)

For the first 7 years to cost to the purchaser will only be Rs 126 630 per year or Rs 10 500 per month.

With such a scheme millions of Indians, who could never dream of a house, will get to own one.


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