During the budget, the state government announced a reduction in stamp duty on multi-story housing units from 6% to 4% until June 30, 2021. Buyers of flats priced up to Rs 50 lakh were eligible for the advantages. The developers wanted the extension as the real estate business failed to realize the benefits of relaxation after tough guidelines were established during the second wave.

Rajasthan CREDAI Chairman Gopal Prasad Gupta stated, “To assist developers, the state government could take the Maharashtra model, where stamp duty reduction is granted to all plots.” The timeframe is too small, and people will not take advantage of this extension.”

Following the first lockdown, both consumers and the real estate business suffered a setback when stamp duty was raised from 5% to 6%. In addition, with a 1% registration charge and a 30% additional tax, the total stamp duty had risen to 8.8 per cent.

Despite the fact that the relaxations were announced in February, the limits imposed during the second wave put a spoke in the wheel of the real estate market. “Due to the second wave, not many people were able to close the deal. Many clients who had intended to buy a flat worth up to Rs 50 lakh put their plans on hold,” said Ankur Sharma, a developer.

In response to CREDAI’s request, the Rajasthan Real Estate Regulatory Authority (RERA) extended the deadline for developers to submit Quarterly Progress Reports (QRPS) for their registered projects by one month.

The authority stated in the most recent directives that the deadline for submitting QRPs for all previous quarters, as well as those ending on March 31, 2021, had been extended to June 30, 2021, with no delay in processing charges or penalties. This period has now been extended until July 31, 2021.

The post Stamp duty exemptions for buyers in high-rise buildings have been extended until September 30. appeared first on .

The Confederation of Real Estate Developers Associations of  India(CREDAI)Andhra Pradesh has urged the government to take steps to reduce the registration stamp duty from 7.5% to 2% to help the real estate sector which is reeling under the impact of COVID 19.

The post CREDAI Andhra Pradesh Urges for Stamp Duty Cut to Boost Realty. appeared first on .

Representatives of the real estate body that has over 1,800 members stressed the positive cascading effect of property market recovery on Maharashtra’s economics in a meeting with the State Revenue Minister, Balasaheb Thorat.

“A key role has been played by the State Government in allowing the real estate industry to lead an economic revival in the midst of a pandemic.  We have requested that the Maharashtra Government extend the stamp duty rebate for another 12 months in order to maintain momentum while continuing the positive cycle of investment given the over 250 ancillary industries that rely on the industry, resulting in further job creation and overall economic revival,” said Deepak Goradia, President, CREDAI MCHI.

Recognizing the government’s support for the recovery of the state’s real estate sector, particularly in MMR, CREDAI MCHI’s suggestion stems from the current financial insecurity imposed by the pandemic on citizen and potential homebuyers.

The industry body insists that extending the timeline for taking advantage of the reduced stamp duty charges would ensure the continuation of the sales momentum that has seen record-breaking property registrations in the last six months since the announcement of the stamp duty reduction.

The post CREDAI-MCHI asks the Government of Maharashtra to elongate the stamp duty reduction by another 12 months. appeared first on .

Housing and Urban Affairs Minister Hardeep Singh Puri said the government will soon issue an advisory to all real estate regulatory bodies and state about the special measures that must be taken to protect the interests of homebuyers and all other stakeholders in the real estate industry.

In an urgent meeting of the Central Advisory Council (CAC) formed under the provisions of the Real Estate (Regulation and Development) Act, 2016 (RERA), held on April 29th via a the webinar, Puri addressed the effect of the Covid-19 pandemic and the consequent national lockdown on the real estate sector and treated it as a ‘Force Majeure’ event under the RERA provisions.

Amitabh Kant, CEO, NITI Aayog, Durga Shanker Mishra, Secretary, MOHUA, Sh A K Mendiratta, Secretary, Department of Legal Affairs, Principal Secretaries and Chairpersons of several States’ Real Estate Regulatory Authorities, representatives of homebuyers, real estate developers, CREDAI, NAREDCO, Financial Institutions and other stakeholders participated in the virtual meeting.

The meeting mulled on the issues of the real estate industry, in particular the effects of the COVID-19 pandemic and the consequent national lockdown.

The housing minister told all the participants after thorough discussions that the issue would be addressed taking into consideration the concerns of all stakeholders.

There has been a request to include special relief for the real estate industry so that the business can deal with the negative consequences of the global crisis. COVID-19 has also disrupted construction operations leading to large-scale reverse labour migration and supply chain disruption of different construction materials.

The post Housing minister says government will soon issue a special advisory to save homebuyers interest. appeared first on .

Because cities are in locked down and people are reluctant to move out of their houses, buyers have the greatest worry over whether or not their investment in the real estate is secure. Realty shares have slipped into COVID-19’s terror, and many customers are uncertain over whether to stay invested or exit.

Though according to the experts, now is not the time to panic and exit but to stay committed as an investment is also a long term goal. And the recommendation is that real estate investors should wait to come back for happier days.

“Equity generates wealth over a long-term basis. Short-term traders may be concerned; however, long-term investors see it as an opportunity. A quarter or two can go poor, but the market will be around for decades. So all I see today is an illogical sale. It’s just desperation and uncertainty that causes confusion. Promoters never panic but see it as an opportunity,” says Dhiraj Mittal, CEO, Prime Capital Services.

“Many businesses and even the TATA Group CEO, I read in the news recently, are buying. Wise investors will go ahead and purchase. Investment now in real estate or other well-managed company can deliver tremendous returns over a quick 2-3 year span,” adds Mittal.

Do you have to fear that the COVID-19 might endanger your investments?

Mittal says, “COVID-19 If you look at the history, China was the first to get infected now they’ve withdrawn the lockdown. As we see in the news, this virus has a bell curve where they’re increasing, and they’re dropping, based on that the condition may get usual by a month of May, although there are still exceptions.”

Developers claim the present condition is not a result of the real estate industry’s poor performance. They say this condition doesn’t mean that the real estate market is not performing well. Rajesh Prajapati, MD-Prajapati Group, founder President MCHI-CREDAI Raigad, “I don’t think customers should be concerned. It’s not just about the real estate market this fall. This decline of inequity isn’t just a reflection of how our business is performing. Investors are now in a mood to take away their money. Nothing to panic about, it’s just a transient process and the real estate sector will improve

The post Experts predict the real estate market will see a surge in returns in 2-3 years. appeared first on .

On Monday, the Inspector General of Registration and Stamps (IGR) said Maharashtra’s Ready Reckoner prices will be declared after May 31 owing to the COVID-19 outbreak.

It was expected to declare ready reckoner rates for this year on April 1. In an order released on Monday, state IGR Omprakash Deshmukh said the rates will be declared later in compliance with the additional instructions of the government. He added that the current ready reckoner rates would apply in the state till May 31 or the date the government would issue the instructions.

Revenue Minister Balasaheb Thorat said last week that this year’s ready reckoner (RR) rates had been deferred in the wake of the state’s coronavirus outbreak.

The ready reckoner rates, which are the prices of a residential, land, or commercial property for a defined location, are released annually on March 31 and enforced from April 1. All real estate calculations, such as stamp duty, registration, premiums and tax collection, are based on the ready reckoner rates.

Deshmukh, in his order released under the Maharashtra Stamp (Determination of True Market Value) Rules, 1995, said the government could not publish the rates for 2020-21 following the coronavirus outbreak.

“The state government has instructed to proceed with the 2019-20 rates until further instructions. The government has ordered the IGR to maintain the prices until 31 May or further orders. All field officers of the 516 registration offices throughout the state have been given appropriate instructions and they must act accordingly,” said the IGR.

Representatives of the Confederation of Real Estate Developers Associations of India (Credai) also urged the government not to raise the ready reckoner rates on the ground that the COVID-19 lockdown has slowed down the already slowing real estate market.

The post Maharashtra Ready Reckoner Rates to be declared after 31st May 2020. appeared first on .

Real estate developers body is looking for a 12-month deferral of housing loan instalments, a 2-year moratorium on project loans, issuance of building plans and other permits that are being supported by payment of fees, and other steps to help the real estate industry in UP and Haryana.

The National Real Estate Development Council (NAREDCO-UP) has written to Finance Minister Nirmala Sitharaman urging them to support the sector in this tough period.

“Because of the impact of Covid-19, housing sales are almost zero. There are no buyers in the sector; of course, the valuation of housing prices is zero. We have requested Finance Minister for some relief package,” said Supertech Chairman RK Arora, who also serves as Naredco-UP presidents.

To address the impact of the pandemic, NAREDCO said it is important that all project loans disbursed by the banks be given unconditional 2-year moratorium during which time, no project account should be considered as NPA and no recovery action should be taken against any developer. It has also asked for the removal of all NCLT/DRT cases against the developers.

To alleviate liquidity for retail home buyers who have taken home loans but require liquidity assistance owing to a pandemic condition, the body has demanded a 12-month deferment for EMI to pay home loan instalments. Penal interest can be permitted through this time of waiver of the additional interest.

CREDAI has stated that the industry is already facing a severe shortage of construction materials owing to import constraints and the closure of state borders leading to supply chain problems and strong rise in material prices. Because of the Covid-19 virus building sites is also locked-down.

For a year starting on February 15, the entity has sought an exemption from payment of interest on external development charges and internal development charges. It has also stated that the phase of the required approvals for the construction of a project must be conducted with urgency without the requirement of Bank Guarantee(s) and other charges.

The post Developers’ body seeks to defer housing loans EMI for a 12months. appeared first on .

Realty developers body the Confederation of Real Estate Developers Association of India (CREDAI) has opted to pay construction staff even though they are off work owing to sickness or work stoppage at the site in the context of ongoing coronavirus mayhem.

CREDAI has mentioned in a letter to members of its realty developers that this change would help construction workers handle the stress in these tough times.

“In these days of global tragedy, we as an industry will stand united in solidarity and combat this battle. It’s time for us to stand by our clients, suppliers, employees and particularly our site workers who need us the most,” said CREDAI National chairman Jaxay Shah.

It was reported on Saturday that the coronavirus epidemic has started to effecting on active construction activities as more than 30% of staff are not reporting to project sites owing to fear of contamination and contractors are still not willing to move them through.

“There are about 20,000 pending projects around the nation, and construction activity is conducted in around 18,000 of these. It entails about 8.5 million in construction work alone,” said the industry body.

Given the anticipated effect of the Covid-19 outbreak on the economy, developers advise the authorities to use the Rs 1 lakh crore raised from them for the Building and Other Construction Workers’ Welfare (BOCW) cess to include wage losses and health benefits for construction staff.

The post Realtors’ body rules to provide wages to the construction workers even though they are off work due to COVID19. appeared first on .

Against the backdrop of the Coronavirus outbreak and its effects on the economy, the body of real estate developers, the Confederation of Real Estate Developers’ Associations of India (CREDAI), seeks to delay the debt repayment scheduled for the next 3 months and to be permitted to recover in installments over the next 12 months.

The developers’ body has also recommended a re-fixing of the interest rate on all real estate sector loans at the repo rate on which banks borrow from the Reserve Bank of India (RBI). This has assured the government that the benefit will be passed on to the consumers.

Besides other suggestions, CREDAI has proposed to use Rs 1 lakh crore lying in the Building and Other Construction Workers’ Welfare (BOCW) Cess Fund raised from developers to provide wage losses and health benefits for construction staff.

“As cash flows are impaired due to the financial crisis, buyers are unable to fulfill commitments, additional funds from financial institutions are expected to cover rising costs under the same conditions when current loans and without excessive collateral,” CREDAI said in a statement.

It also suggested that COVID-19 should be classified as ‘force majeure’ under Section 6 of RERA, which offers an extension of the registration of projects given to promoters. CREDAI also tried to increase the completion date and exemption of fines by one year under the RERA.

Considering the current scenario of no cash inflow for real estate, the central bank’s Special Mention Assets Classification for deferred payments needs to be held in abeyance or revised such that delays in repayments are not to be reported for the first 90 days, CREDAI said while adding that benefits under their insurance cover could be allowed by treating COVID 19 as force majeure.

The post CREDAI plans to reset the interest rate along with rescheduling debt repayment. appeared first on .

Places like Tambaram and Chromepet could see a surge in demand because of the proposed metro service from the Chennai Airport to Kilambakkam.

After the much anticipated and needed announcement of Chennai Metro Rail, which would connect Chennai Airport to Kilabakkam, southern suburbs like Tambaram and Chromepet expect an increase in property prices.

According to S Sridharan, Chairman of Confederation of Real Estate Developers Association of India (CREDAI), Tamil Nadu, “The provision of public transport could be a blessing for citizens chosen to stay in affordable areas such as the southern suburbs, where there is not an issue with commuters to daily go to their workplace. The current trend indicates that buyers will also be considering investing in outer parts of Chennai if the size and price of the unit are appealing and the chances of the following are higher:

1. Higher appreciation

2. Better job opportunities (due to demand for IT space)

3. Infrastructure development happening at a faster rate. The airport is already being expanded. With Chromepet completion rising by 15 per cent and the rate in Tambaram rising by 20-21 per cent compared with Rs 4493 per sqft, things look up,” he says.

Construction is expected to start in 2021 on the 15.3-kilometre stretch and will be developed on the current GST road alongside the suburb. The project costs Rs 3500 crore and will begin after the Detailed Project Report (DPR).

Samantak Das, Executive Director and Chief Economist, JLL India believes that Chennai Metro Rail’s second phase is driving Chennai’s South, West and North West real estate growth. Tambaram and Chromepet are already experiencing a good volume of real estate development, in terms of residential properties and retail property, along Corridor 5 (Madhavaram to Sholinganallur).

The post South-Chennai to become an ideal investment zone. appeared first on .