Tag: RERA

GST Council may soon clarify tax exemption to Real Estate Regulatory Authority

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The GST Council is likely to soon clarify that the Real Estate Regulatory Authority (RERA) will not be required to pay Goods and Services Tax (GST), an official said.

According to the official, RERA, which functions as a regulator as well as facilitator for the realty sector, is covered under Article 243G of the Constitution dealing with the powers, authority and responsibilities of panchayats.

RERA was set up in different states to ensure transparency in real estate projects, protect the interest of consumers and establish an adjudicating mechanism for speedy dispute redressal.

The official said that after discussions with RERA functionaries about the nature of their function it was decided that GST is not applicable to them. The official further said that RERAs are funded by respective state governments and hence levying GST would mean taxing state governments.

A meeting of the GST Council, chaired by the Union Finance Minister and comprising state ministers, is likely to be held before the imposition of the Model Code of Conduct for the general election due in April-May. The last meeting of the GST Council was held on October 7, 2023.

Moore Singhi Executive Director Rajat Mohan said before July 18, 2022, certain services offered by key regulatory bodies in India, including the Reserve Bank, Securities Exchange Board of India (SEBI), Insurance Regulatory and Development Authority (IRDA), Food Safety and Standards Authority of India (FSSAI), and the Goods and Services Tax (GST) network, were not subject to GST.

This exemption was lifted on July 18, 2022, leading to discussions about the tax implications for RERA bodies as well.

“Furthermore, in the residential real estate sector, Input Tax Credit (ITC) is not permissible, which means excluding RERA authorities from GST considerations could potentially reduce expenses for both developers and homebuyers. Consequently, a clarification from the GST Council on this matter would be significantly beneficial for the sector,” Mohan added.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Budget 2024 | Incentives to buyers, tweaks to definitions of affordable housing top real estate sector’s wish list

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Despite the fact that the government will be presenting only an interim budget on February 1, the real estate industry has high hopes it will have something to accelerate growth for the sector. These hopes from Union Finance Minister Nirmala Sitharaman are two-pronged: measures to boost demand through tax incentives for buyers, especially in the affordable housing space, and proposals that will spur construction activity, including a lighter compliance burden.

Given the government’s long-stated push on affordable housing and its “Housing For All” mission, Sandeep Runwal, President of NAREDCO Maharashtra, says, “We suggest an increase in the cap for interest rate deduction under section 24(b) from ₹2 lakh to ₹5 lakh per annum. Additionally, there’s a call to redefine the definition of affordable housing, proposing an increase in the cap from ₹45 lakh to ₹1 crore, particularly in metro cities”. He expects these two measures will significantly boost the market for both affordable and mid-income housing segments.

Runwal believes such measures, acting in concert with the incentives that already exist for affordable housing like the affordable rental housing schemes, will act as a catalyst for accelerated growth of the real estate sector. But he is also hopeful that fresh tax benefits for first-time homebuyers and the re-introduction of GST with an input tax credit on under-construction properties will help shore up the momentum.

Pritam Chivukula, co-founder and Director of Tridhaatu Realty and vice president of CREDAI-MCHI agrees. “Such measures are expected to lower property rates and stimulate demand. With property prices in metro cities skyrocketing, the industry advocates for a revision of the cap in the credit link subsidy scheme. Raising the limit from ₹45 lakh to ₹1 crore for metro city home buyers will significantly benefit the affordable housing segment, making homes more accessible,” he says.

Chivukula is also an advocate of expanding the Special Window for Affordable and Mid-Income Housing (SWAMIH) Investment Fund, which was formed specifically to aid in the completion of stressed and stalled residential projects. “This will not only assist developers but also reinforce homebuyer confidence by delivering projects on schedule,” he argues.

The real estate sector’s revival over the last couple of years has not been restricted to the metros; even smaller Tier-2 and Tier-3 cities have seen a significant uptick in property deal volumes and deal values. This momentum, developers say, cannot be allowed to falter. As SK Narvar, Group Chairman, Trident Realty puts it, measures are needed to both create fresh demand and encourage more developer interest. “Government can consider providing more infra-development funds to ensure that a larger number of projects in these cities benefit. Furthermore, the government should consider revising the definition of affordable housing, both in terms of value and size, to cater to a large population that has returned to their hometown and to boost housing demand in new markets,” he says.

Developers also point to a new trend that has taken root: an increasing propensity for non-resident Indians (NRIs) to buy property in India. Aakash Patel, Director at Atul Projects India says, “The residential real estate market in India has become increasingly appealing to NRIs, thanks to improved transparency from the Real Estate Regulation and Development Act (RERA) and relaxed investment norms,” he says, and add that incentives like easier tax compliance and reduced withholding tax rates would go a long way in not just generating more interest but closing bigger deals faster.

Players are also keen that burgeoning investor interest in commercial real estate as a category cannot be ignored, and should not be allowed to flag. ”The global rise of Real Estate Investment Trusts (REITs), along with India’s burgeoning REIT market, indicates a bright future for the nation’s commercial real estate sector. The government’s efforts to enhance liquidity and bolster investor confidence in REITs are eagerly anticipated,” Patel says.

Then there is the argument for granting the sector infrastructure status, which will bring with it automatic supportive measures. Pradeep Aggarwal, founder and Chairman of Signature Global says, “This recognition will not only catalyse investments but also streamline regulations, fostering a more conducive environment for sustainable development. Furthermore, we urge the government to extend the benefits of Infrastructure status to the affordable housing segment, a move that will significantly boost the sector’s affordability and accessibility.”

He argues that in addition to infrastructure status, efforts to cut down on red tape when it comes to starting and constructing new projects will also help increase supplies, which will in turn mean home buyers do not have to worry about high prices. He says, “In pursuit of efficiency, we implore the government to institute a Single Window Clearance system, expediting approvals and sanctions. This streamlined process will mitigate bureaucratic hurdles, paving the way for expeditious project execution.”

Last, but by no means the least, is a call for easier access to cheaper funds for the industry. Cultivating a more congenial funding ecosystem for the real estate industry, experts and players say, has to go hand in hand with the other incentives and simplified processes if the end result of a stronger, more vibrant, and high-growth real estate sector is to be meaningful. This also has to dovetail with measures to strengthen allied ecosystems and industries — on both the supply and demand side – especially when it comes to commercial real estate.

Aman Trehan, executive director at Trehan Iris says, “To promote growth in the office space segment, start-ups, MSMEs, and entrepreneurship need to be supported. The budget should continue to emphasize measures to encourage consumer spending and investment to strengthen the retail space segment.”

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Prestige Estates aims for sales of ₹25,000 crore in FY25

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Bengaluru-based property developer Prestige Estates Projects is targeting sales of nearly ₹25,000 crore in the financial year 2025, a 25% year-on-year growth.

Irfan Razack, Chairman and Managing Director said the real estate cycle is closely tied to the wealth cycle rather than the stock market cycle.

“It’s not just about the stock market; it’s about the overall positive sentiment in the economy. When people have extra money, they tend to invest, and that investment can be in either the stock market or real estate,” he said.

In a regulatory filing on October 6, Prestige Group reported an over two-fold increase in property bookings year-on-year, totaling ₹7,092.6 crore. Razack pointed out that in the first six months of financial year 2024, the company managed to achieve sales of ₹11,007 crore, nearly matching full year FY22 sales of ₹12,931 crore.

Also Read | Prestige Group anticipates robust second half with multiple residential launches

Razack said the desire for homes, including upgrades to second homes, has surged.

Prestige Group aims to cater to a diverse market, focusing on mid-income housing while also offering luxury and premium homes.

According to an HSBC Global Research report on the outlook for the Indian residential market in 2024, the strong demand for residential properties will persist due to factors such as affordability, limited supply, and a robust pipeline of projects.

In November, Prashant Thakur, Regional Director and Head of Research at Anarock Group, also pointed out to CNBC-TV18 that the increase in property prices is, in part, a rebound from seven years of stagnation before the COVID era. During this period, the real estate industry remained stagnant, and property prices showed little growth.

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While affordable housing, specifically those priced under ₹40-45 lakhs, continues to face challenges, Thakur pointed out that the primary market activity is observed in the ₹80 lakh to ₹1.5 crore range. This trend is particularly evident in the top seven cities.

Prestige Group currently has a market capitalisation of ₹46,522 crore.

For the entire interview, watch the accompanying video

Also, catch all the live updates on markets with CNBC-TV18.com’s blog

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3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Jharkhand RERA blacklists firm, partners for violation of norms & not registering project

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Jharkhand Real Estate Regulatory Authority (RERA) on Friday said it has blacklisted a real estate firm and its three partners, debarring them to undertake any projects for violation of norms and non-registration of projects.

A total of 18 complaints have been received against the firm and its three partners.

“In a first such move in Jharkhand, we have blacklisted M/s Rebloon Impex and its three partners – Dharmendra Kumar Dheeraj, Rajesh Kumar and Shashikant Singh for failure to get registration done with Jharkhand RERA despite court order in this regard 3.5 years back and violation of various norms,” Jharkhand RERA Chairman, Ranjeet Kumar Choudhary told PTI.

Member, Jharkhand RERA, Birendra Prasad said the authority was committed to ensure justice to buyers and was forced to take the step of blacklisting the firm as a last resort.

“A total of 18 complaints have been registered against M/s Rebloon impex and its three … out of which orders have been passed on 17. In the first case which was disposed of in December 2019 a fine of Rs 5 lakh was imposed on the firm for failing to do RERA registration in two weeks…Similarly after repeated violations, they were served notice by the court as to why no action should be initiated to blacklist them…Failure to comply to all these resulted in blacklisting of the firm and partners,” Choudhary said.

Section 3 of RERA Act makes it mandatory for promoters to register their ongoing or new real estate project (residential, commercial, plotted development/layout, villa or mixed development) with more than 8 units or 500 square metres of land with RERA.

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Choudhary and Prasad said the Authority has till date received 382 complaints from home buyers of which 189 have been disposed of while 193 are pending.

They said the Authority had received 1,736 applications, both in off line and online modes, in the state for projects registration of which 1,144 where registered while 525 were rejected for not fulfilling norms.

Without Registration no promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building, as the case may be, they said.

The officials said in order to protect the interests of home buyers, so far orders have been issued to file certificate cases in 17 execution cases and letters have been sent to concerned Deputy Commissioners for recovery of the amount.

Choudhary said efforts are also made to settle the dispute between buyer and builder through reconciliation and so far 17 cases have been disposed through conciliation talks at the Mediation Centre.

He said to protect the interest of buyers so far registry has been done in favour of four flat owners as per the order from Jharkhand RERA court as the builder was not registering despite full payment.

In one case the Jharkhand RERA court ordered for payment of Rs 29,000 per month by a builder in Dhanbad to a complainant as possession certificate was not given resulting in loss to the party, he said.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Won’t stop construction but expect price-hikes in a month, say developers in Maharashtra

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Developers in Maharashtra will not stop construction work despite skyrocketing material costs but will look to increase housing prices in April, said Dhaval Ajmera, honorary secretary, CREDAI Maharashtra Chamber of Housing Industry (MCHI).

“None of the developers are keen on increasing prices now, but given the situation, we are left with no choice but to increase prices,” said Ajmera, “So, there will be an incremental prices following an overall increment in construction costs.” He added, “Some developers expect to start charging revised prices, at the start of the next fiscal; we can expect higher (housing) prices by April.”

The announcement comes even as material costs have risen by Rs 400 to Rs 500 per square foot in markets like the Mumbai Metropolitan Region (MMR). However, in what must come as a relief to homeowners and to the real estate industry, on the whole, CREDAI MCHI has said it remains committed to uninterrupted construction activity in keeping with RERA regulations.

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A few days ago, communication issued by CREDAI chapters in NCR and Maharashtra hinted at developers halting construction work in light of the steady rise in construction costs. Some developers had also said they had stopped all material procurements.

“We will continue construction and not look to halt it,” said Ajmera, “We are conscious of the promises we have made to homebuyers and are committed to meeting them, not to mention our commitment to RERA regulations which do not permit us to halt work and delay delivery.”

CREDAI MCHI has appealed to various governments to take urgent policy measures that could help mitigate the impact of spiralling material costs on the consumer’s pocket. This includes bringing stamp duty from 5 percent to 3 percent in Maharashtra and permitting input tax credits on the 18 percent GST that developers pay towards construction activity.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Real estate developers in Maharashtra, NCR consider stopping construction thanks to price rise

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Developers in the Mumbai Metropolitan Region (MMR) have begun contemplating stoppage of all procurements and construction activity, following the recent spike in prices of construction material. The move comes even as developers in NCR have issued a release stating they would stop purchases, amid considerations to stop construction work.

Recently, members of CREDAI Maharashtra and CREDAI Pune Metro had written to Mumbai’s finance minister Ajit Pawar and revenue minister Balasaheb Thorat, on the issues plaguing procurements and construction.

“The skyrocketing costs of construction materials are alarming; I can’t recall a spike in construction costs on the lines of what has occurred in the last two months,” said Dhaval Ajmera, Honorary Secretary, CREDAI MCHI.

(more…)

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Resolved over 1,150 homebuyers’ disputes worth Rs 345 cr: UP RERA’s NCR forum

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The NCR conciliation forum of the Uttar Pradesh Real Estate Regulatory Authority (RERA) on Wednesday said it has so far resolved more than 1,150 disputes worth Rs 345 crore between homebuyers and developers. According to the Uttar Pradesh Real Estate Regulatory Authority, most of the disputes had been received from the allottees of the projects in Gautam Buddh Nagar, Ghaziabad, Meerut and Bulandshahar.

Most of the complaints related to the delay in the registered sale deed, possession of the units to the allottees, allotment of car parking slots, shortcomings in project maintenance, power backup, matters relating to the payment of interest on account of delay in possession, etc, it noted.

“The forum, with the constructive cooperation of the associations of the allottees and the promoters, has been able to resolve more than 1,150 disputes involving properties worth more than Rs 345 crore, through amicable settlement by the parties,” UP RERA said.

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According to R D Paliwal, Conciliator, UP RERA, “The Conciliation Forum is the easiest way to resolve the grievances of the home buyers under which the resolution is sought to be arrived at by bringing the promoter and the consumer together on one platform and after detailed discussion and negotiation between the parties in presence of the representatives of both the association of the allottees and the promoters and moderation by the conciliator.”

“The entire model is turning out to be a preferred time-saving dispute resolution process by both the consumers and promoters,” Paliwal said. The UP RERA said allottees can apply for their cases online using the link of its website — https://www.up-rera.in/conciliations.

UP RERA chairman Rajive Kumar said consumer disputes are resolved through mutual agreement under the aegis of the Conciliation Forum by balancing the conflicting views and interests of the parties. He called upon the stakeholders to use the offices of the conciliation forum for resolution of their disputes.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Why now is the best time for HNI, UNI’s to invest in luxury real estate

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The years 2020 and 2021 have been watershed years for the Indian real estate sector. Residential estate showed great resilience during the pandemic and having showcased green shoots early, it is expected to grow further due to the ongoing positive market sentiment. The luxury and the ultra-luxury segment, which had been stagnating for quite some time, saw a sharp revival owing to an accommodative stance from the developers and the government. The number of high-net-worth individuals in the country along with the purchasing power of these individuals has inevitably increased in the past couple of years due to the steady rise in the exchange rate of the US dollar.

The last two years have also influenced consumers across segments to re-assess the need for bigger homes. The ultra-premium segment witnessed an increased demand for luxury homes that offer experiences of the highest standard. There is an escalated need for large green and open spaces, gardens, home offices and recreational areas. Residences that offer the best-in-class services, bespoke curated experiences and top-notch amenities offering a superior quality of life are observing high demand.

Luxury connoisseurs are looking to invest into residential units, which stand out from the general and have a niche for themselves. Sales of luxury housing is on an upward trajectory this year and here is why this may be the best time for NRI’s and HNI’s to invest in the luxury real estate market:

I. World-Class Designs

The pandemic has prompted the reconfiguration of the design and layout of homes. Real estate developers in India are roping in internationally acclaimed designers and architects to keep with the growing aesthetic demands of the buyers in the luxury homes segment. ‘Modern designs with the inclusion of the best available technologies’ as well as ‘aesthetic and ergonomic designs customized to the Indian needs’ are being created by developers for luxury homes.

II. Thoughtful Amenities

The health and wellness concerns amid Covid-19 have reaffirmed the significance of homes as an address to ensure overall well-being. Developers are now creating state-of-the-art amenities with provisions for outdoor spaces. The push for creating sustainable developments has also forced the real estate industry to maintain and expand verdant greenery and exemplify eco-friendly amenities.

ALSO READ | Noida homebuyers update: Flat registration can be done by ‘carpet area’; here’s how you will benefit

III. Investing in a sustainable future

People are now recognising the importance of sustainable and environment-friendly developments. The pandemic has encouraged developers to create thoughtfully designed projects with lower carbon footprints ensuring delivery of future-ready developments. The developers are also targeting to achieve certification from national councils like the Indian Green Building Council (IGBC) as well as globally recognised symbols of sustainability achievement and leadership like LEED certification.

IV. Rise of Branded and Organised players

Brands with strong positioning have always been at an advantage in a crowded marketplace. In the real estate industry, these Branded players bring a track record of on-time as well as quality project completion reducing the risk and greatly increasing transparency. With the rise of regulatory reforms like RERA, GST, etc., the real estate market is becoming increasingly biased towards developers who can comply with the transparent way of working. Timely delivery and transparency have become hygiene factors and product innovation & thoughtfulness, quality etc. are becoming key differentiating parameters.

V. Low-interest rates

Mortgage rates are at an all-time low. These low rates provide people with an added incentive to buy homes or invest in real estate since there is a considerable difference between the mortgage rates and the opportunity cost of capital like in investing in equity markets, etc. In a year of slow growth, the accentuated demand points towards the fact that investor activity in this segment is also increasing.

A culmination of all these reasons identifies why the premium and luxury real estate market is a prominent proposition for luxury investors. There is accentuated growth in the sector further offering bountiful returns. Hence, now is the right time to invest in this market!

—The author, KT Jithendran, is CEO, Birla Estates. Views expressed are personal

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Noida homebuyers update: Flat registration can be done by ‘carpet area’; here’s how you will benefit

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Noida Authority has issued an order mandating that the registry of flats will now be on the ‘carpet’ area. This order comes  as a relief for a number of homebuyers who have long been demanding that the registration of a flat not be determined by the ‘super area’.

So, how will the new rule impact homebuyers?

According to Santhosh Kumar, vice-chairman, ANAROCK Group, this order by the Noida Authority will bring much relief to homebuyers as it will reduce their registration fee cost for flats and thereby lower their overall property acquisition cost.

“The Real Estate Regulatory Authority (RERA) mandated earlier that developers sell flats based on carpet area instead of the super built-up area. However, even while developers did mention the carpet area, there was ambiguity when it came to registration of flats. It was mostly charged on the super-area. With this order, there is absolute clarity and homebuyers are set to benefit,” Kumar said.

But, what exactly is a carpet area?

According to RERA, carpet area is the net usable floor area of an apartment, excluding the area covered by the external walls, areas under services shafts, exclusive balcony or verandah area and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment.

In short, it is the area that can be covered with a carpet in a flat.

How is it calculated?

So, in order to calculate it, one can use this formula:

Inner wall area + floor area = Carpet area.

Multiplying the length and width of each room, inner walls, inner corridors, etc., and then adding them all up would give the carpet area of the house. One can refer to the house plan document to calculate carpet area, and additionally, once the walls are done, one can measure with a tape and verify, as per a property adviser.

How is carpet area different from super built-up area?

Super built-up area, on the other hand, includes the carpet area, the built-up area, as well as a share of the balance area, such as the stairs, lobbies and galleries, which can be used by all the residents

So, which is better? Carpet area or super built-up area?

Experts say that super area of a flat is usually more than the carpet area as it include area covered by the external walls, areas under services shafts, exclusive balcony or verandah area and exclusive open terrace area.

So, that’s a factor which gives scope to developers to escalate the cost of apartments, Kumar said.

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

RERA has caused supply-side disruption in realty space: UTI AMC

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Real Estate Regulatory Authority (RERA) has caused supply-side disruptions in the sector, Vetri Subramaniam of UTI Asset Management Company said in an interview to CNBC-TV18. “Because of RERA, there is a lot more tightness in business in terms of supply,” he said.

There has been much consolidation on the supply side because finance is no longer available as easily as before, said Subramaniam, Group President and Head-Equity at UTI AMC.

He said the interest rates today are the lowest he has seen in his lifetime. “You have extremely favourable, enabling conditions in place today with the kind of rates at which you can get a mortgage today at 6.5 percent,” he said.

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The remarks from the seasoned fund manager come at a time when optimism on the upcoming festive season is driving demand for realty shares on Dalal Street. Experts say low interest rates and a pickup in demand for housing are likely to boost the property market in the coming months.

Subramaniam believes enabling conditions such as low interest rates and significant consolidation on the supply side makes the sector attractive now.

“Real estate sales and new housing sales on some level are always connected to demographic and income advancement. It’s not that none of that has happened in India over the last few years. It has been there but we had to work our way through,” he said.

Realty companies in the past have disappointed with their ability to generate cash flow. “I can only hope that some (companies) have learned their lessons from the past cycle and this time… We see a lot better execution. And the trick in Vienna state has always been execution,” said Subramaniam.

Also Read: GDP contribution from realty likely to be in double-digits in 3-5 years, says Kotak Mahindra AMC

According to Irfan Razack, CMD of Prestige Group, potential first-time homebuyers who were sitting on the fence are now making purchases. Many people are trying to upgrade their homes as well, he said.

“Plus, when the going is good, you always get a small percentage of investors getting into the market to take advantage of the overall upswing. So, it is a combination of all three that makes demand real. I think things are going good (for the sector); people are buying new homes,” he said in an interview to CNBC-TV18 on Monday.

Also Read: Major housing demand is coming from first time buyers, says HDFC’s Keki Mistry

Murtuza Arsiwalla, Director at Kotak Institutional Equities, believes it is hard to find value in realty stocks at the current juncture.

“We are not in a value zone… We are now looking at growth expectations,” he said.

Watch the video, for more details.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow