Single window clearance will cut housing cost, Pune realtors says
Dec 05, 2013
Source : The Times of India


PUNE: Higher input, finance costs, non-availability of bank finance for real estate projects and exorbitant taxes are some of the problems that will be debated in the forthcoming Credai Conclave 2013, which will take place in New Delhi on December 13 and December 14.

Lalit Jain, chairman of the Confederation of Real Estate Developers Associations of India (Credai), told media persons here on Wednesday that permissions from local bodies, state and Union governments take inordinately long time, escalating the coEst of projects, which in turn makes houses more expensive.

Faster approvals will help developers cut down construction period, which in turn will reduce finance costs, create bigger housing stock and make homes more affordable, Jain said. “High interest rates on home loans are also compelling home seekers to postpone their buying decisions,” he said.

Credai vice-president Satish Magar said, “If a residential project falls within the limits of a city, approved under the development plan, there is no need to obtain permission from the environment ministry as the approval to the development plan comes only after considering the impact on environment.”

Magar said the cut off levels for project size which need environment clearance hold no logic. A 20,000 sq meters project need the clearance whereas a project 100 sq meters less in size does not, he said. “It’s a different thing if the project is a Greenfield township, but for areas which have received broader clearances need not be subjected to project wise approvals,” he added.

All these and many more issues which are critical for the healthy growth of the country’s real estate sector will come up for debate in the forthcoming Credai Conclave 2013 which will take place in New Delhi next week,

Jain said the realtors’ body will push for a ‘single window clearance’ regime with stress on need for appropriate coordination between the Union and state ministries.

‘Demand for houses in city stagnant’

times news network

Pune: Residential real estate developers, who have put up a brave front for long saying all is hunky-dory on the sales front, have admitted that the demand has stagnated as home buyers hold back their purchase decisions. Credai Pune Metro President Hemant Naiknavare said that there is a fall in the number of proposals being submitted to the Pune Municipal Corporation.

The delivery cycle of most developers has been disturbed and are liquidity issues, Naiknavare said. “Once approval comes for a project, various payments including premium to PMC become due. Because the sales have stagnated, many developers don’t have the funds to make the payment.”

A fall out of this crisis will be projects getting redefined or broken down into smaller parcels or developers choosing to build high-end luxury houses where the demand and profitability is much better, Naiknavare said.

Naiknaware, however, clarified that there is no vacancy situation in the city. “The demand has reduced and so has the supply. In fact, we may face a tricky situation in a couple of years when there will be no addition to supply as there are no new projects coming in now and demand will still continue. We may see a spike in prices then,” he said.

Latest Realty News

Focus on delivery makes Mumbai realty realistic
Dec 05, 2013
MUMBAI: A perception is gaining ground in Mumbai that the city’s property market has reached a saturation point, with critics citing the standing inventory of 48 months as evidence. However, a closer look at the market suggests that even though it is facing the effects of an overall slowdown, like any other part of the country, the high inventory level is not necessarily a sign of stress at the project level or with developers’ balance sheets.
Buying a house? It’s right time for realty check
Dec 05, 2013
MUMBAI: A recent report from property consultancy firm Knight Frank says that real estate prices in certain Mumbai areas have declined by 10%. The same report says almost 45% of the new properties that are coming up in the city are unsold.
Commercial realty projects find favour with PE firms: Cushman & Wakefield report
Dec 05, 2013
MUMBAI: The value of private equity transactions in the country's real estate sector surged 26% year-on-year in the nine months to September, indicating that PE investors remain bullish on the sector, particularly the commercial segment, despite weak sales and rising inventories.
Unitech defaults on Rs 200-crore loan from LIC
Dec 05, 2013
MUMBAI: Unitech, India's fourth largest real estate developer, defaulted on the payment of interest on a Rs 200-crore loan it had taken from Life Insurance Corporation of India (LIC) way back in 2007, joining the list of companies grappling with liquidity issues.
Road to evolution of Pune
Dec 04, 2013
PUNE: Pune has an advantage by virtue of the fact that it has been able to add to its borders by means of surrounding villages. This has served to decrease the pressure on the central city and encouraged an outward growth pattern. However, there are challenges related to Pune’s infrastructure, particularly its road network and these have more to do with the speed of this growth. While there are various proposals for road widening, these have to be translated into real time, to be effective, as i
Is it time to buy residential property in Mumbai?
Dec 04, 2013
MUMBAI: Here’s good news for those nurturing that elusive dream of owning an apartment in India’s financial capital. Like New York or London or any other blue chip market, Mumbai has thus far remained largely unscathed by a correction in real estate prices. And so, despite a pile up in inventory, a large pull back in demand, plummeting new launches and deteriorating finances of property developers, prices haven’t really come down. But now there are signs of a softening of prices according to a r
Hike in TDR prices takes the Mumbai market by surprize
Dec 04, 2013
MUMBAI: The real estate market in Mumbai has been going through ups and downs since the past five years. However, the segment received a major jolt due to the recent spike in transfer of development right (TDR), a move which has been received by the suburban developers with great caution and even disappointment. TDR plays an important role, at least in the suburbs of Mumbai. Ram Raheja, director and head-design and architecture, S Raheja, says, “TDR is an important component for builders redevel
Realty sector saw 18-20% job losses in 12 months: Lalit Kumar Jain, Chairman, CREDAI
Dec 04, 2013
MUMBAI: The country's real estate sector saw 18-20% job losses over the last one year because of weakening sales and tight liquidity, according to Lalit Kumar Jain, chairman of Confederation of Real Estate Developers' Association of India (CREDAI).
Governments need to be efficient to trigger housing sector growth
Dec 04, 2013
MUMBAI: Confederation of Real Estate Developers' Association of India (Credai) today said governments need to be more efficient to accelerate growth in the housing sector.
2,640 families get houses under slum rehab plan in Pune
Dec 03, 2013
PUNE: Over 2,500 of the approximately two lakh families living in the slums of the city have got tenements under the slum rehabilitation scheme, so far.

Latest Realty News Of State

Realty Talk's