Lets talk about Property

Maharashtra CM asks developers to focus on affordable housing in Mumbai

The state government is working on a plan to make real estate permissions more digitised in order to bring transparency

MUMBAI: Maharashtra Chief Minister Devendra Fadnavis has asked realty developers to focus on building affordable homes in Mumbai, the commercial capital of the country, and not "indulge" only in premium segment. 

"We are ready to work with you. We are ready to make your business hassle free...but focus on affordable housing. Let's decide to start building 3 lakh affordable houses in Mumbai in 2016," Fadnavis told property developers adding that builders are not catering to right demand that exists for affordable homes. 

The state government is working on a plan to make real estate permissions more digitised in order to bring transparency. "All applications and permits will be online, that's our goal and we will achieve that soon." 

He also added that Mumbai's civic authority Municipal Corporation of Greater Mumbai will soon unveil its ease of doing business policy in November. The state government will also finalise a part of housing policy in the next 15 days and this will be aligned with the central government's housing policy. 

In the context of slum rehabilitation and the government's vision of achieving Housing for All by 2022, he stressed on bringing efficiency into various government schemes related to housing. 

"I see lot of Letter of Intents for slum rehabilitation projects being traded and no actual work done. If this does not stop, we will discontinue Letter of Intents," he warned builders. 

He also added that Canadian ambassador, in a meeting held recently, told him that Canada's pension fund is keen to invest $2 billion in affordable housing in Mumbai. 

Fadnavis expressed his disappointment that even affordable houses were not available in Mumbai below a price tag of Rs 1 crore. 

Earlier this week, Maharashtra Housing Minister Prakash Mehta had also nudged realty developers, who drew his attention to high taxes and development levies, to develop more affordable housing projects within the city.

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...