Lets talk about Property

Housing Sales to Grow at Slower Pace This Festive Season: JLL 

New Delhi: Housing sales are expected to rise at a slower pace of 15-20 per cent in the ongoing festival season due to high prices in big cities and subdued sentiment in the property market, according to property consultant JLL India.

The real estate market, especially residential segment, has been witnessing a slowdown for last 2-3 years, leading to sluggish housing sales and 4-5 years of delay in the completion of projects.

"Sales traditionally increased by up to 25-30 per cent during the festive season. However, this year we do not anticipate more than 15-20 per cent increase due to the fact that sentiment is still somewhat subdued and there is an affordability gap in the larger cities like Mumbai," JLL India chairman and country head Anuj Puri said in a report.

Festival season is considered auspicious for real estate purchase and therefore developers gear up for increasing their sales, he added.

"Many households pinpoint this time for upgrading to more spacious and better-located homes, and even investors are driven by the traditional sentiment as this is a time considered ideal for wealth creation," Mr Puri said.

JLL said the housing market is currently flush with options for prospective buyers and developers are offering discounts in almost all the projects, especially those which are ready to move in.

"The offers and freebies that are being made available during this period must be closely examined to establish their true contribution in terms of the overall value of the property, and the deal itself," JLL advised buyers.

Stating that hard discounts would be better for end-users and investors, Mr Puri said buyers could consider the offers wherein developers waive stamp duty and registration fee as this translates into an actual saving.

To boost housing demand, Mr Puri said the government needs to review the taxes and duties that affect the pricing of any project. Also, the process of granting approvals needs to be speeded up so that the time taken from conception to actual delivery of homes is reduced.

In January this year, JLL had projected that housing sales would rise this year to 1.92 lakh units in the country's top seven cities. Sales had fallen to 1.75 lakh units in the primary markets of seven major cities in 2014 against nearly 2 lakh units in the previous year.

Image description

Realty Trends

Home prices near most-affordable levels in over 30 years: HDFC

Home prices may have been on an upward spiral for many years, but the cost of owning a house in India remains near the most affordable level in over three decades, shows data compiled by mortgage giant HDFC Ltd.

The average price of a home, purchased with a housing loan, rose to over Rs. 45 lakh in the 2012-13 fiscal year -- marking the fourth consecutive year of uptrend from about Rs. 25 lakh in the year 2008-09, HDFC has said in a presentation.

However, factors like an even greater surge in the personal income levels, tax incentives and lower interest rates, have resulted into houses becoming more affordable to purchase, it said.



Image description

India Property Investment Gyan

Major schemes for affordable housing to be modified: Girija Vyas

NEW DELHI: Major schemes meant for providing affordable housing to urban poor will soon be modified to make them more people-friendly, the government said today and invited the private sector to contribute more actively in this area. 

Speaking to reporters here, Housing and Urban Poverty Alleviation (HUPA) ministerGirija Vyas today said her ministry is modifying all the major schemes including the Rajiv Awas Yojana (RAY), Rajiv Rinn Yojana and the, Affordable Housing in Partnership scheme and added enormous budgetary support has been earmarked during the current plan period. 

Secretary HUPA Arun Kumar Misra told reporters that a fund of Rs 35,000 crore had been allocated to the ministry for the implementation of three major schemes, including RAY, which was being run in as a pilot project earlier under 12th five- year plan. 

He said the ministry would require approval from the cabinet for the implementation of these schemes and efforts would be made that through these funds 2 million affordable houses are encouraged. 

He said that in addition to the central government funds, banks and credit institutions would be providing funds for construction of affordable houses. 

Vyas said that with urbanisation, the number of urban homeless and area under slums had grown. 

Vyas said there was a need for private developers to develop economic models to foster affordable housing for economically weaker sections and lower income group households in urban areas as government efforts in this direction needed to be supplemented. 

Vyas also said a technical group, set up by her ministry, had shown that out of 18.78 million housing shortage in the country, 96 percent shortage is in EWS and LIG category and for this huge investments and private sector participation were required. 

Misra said the group set up by the ministry has suggested incentives for the affordable housing sector included concessions to development-related charges and service taxexemptions. 

It also sought direct tax rebates for affordable housing projects and inclusion of the sector in the 'infrastructure facility' he said and added the task force had felt that governments need to still provide direct capital grant support to affordable housing projects. 

Misra said that in the symposium held today where states, experts and private sector representatives were present, there was unanimity on many of the suggestions.

Image description

Green Property- Eco Homes

Reclaim your city space: Projects in Delhi, Mumbai and Kolkata aim to transform lives

Three projects in three cities aim to transform the lives of people who live close by. The one in Mumbai hopes to transform a congested area into a green precinct; the one in Delhi converted an open drain into a walkway, while Kolkata hopes to bring the crowds back...