Land and property prices are reasonable in the Nashik city and are within the reach of a common man, says Anant K. Rajegaonkar- Co-chairman, Suyojit Group and immediate past President of CREDAI, Maharashtra. He is a nominated member of the Panel of Architectural Consultants & Engineer of Nasik Municipal Corporation besides, in the panel of Nationalized & Scheduled Banks, Nasik Agricultural Produce Market Committee & various Educational Institutions. He discussed issues concerning Nashik Real Estate and also threw light on reform initiatives of the current NDA Govt pertaining to the sector.
Q. 1. How is the land and property prices hovering in Nashik? What are the issues concerning the developers here?
A. Nashik is an excellent destination for investment in real estate as it offers all the comfort of a metro with beautiful natural surroundings, serene weather, no traffic congestion, cleaner air at most affordable prices. Land and property prices are reasonable in the city and are within the reach of a common man. The city offers accommodation for everyone starting from budget housing to ultra posh living units. The issues which need attention are:-
· Infrastructure in Nashik needs a big facelift to make it a global city.
· Government should give a big push to industrial development in Nashik.
· Government needs to push the development of Social Infrastructure.
· Keeping in mind the needs of new age professionals and entrepreneurs, the city should be developed as an IT and education hub.
· Nashik can help Mumbai in a big way to decongest. Government should consider developing few cities as Mini-Mumbai in the state and Nashik offers a great opportunity for that.
Q. 2. Which are the marquee projects of Suyojit Group so far?
A. Suyojit is a leading real estate company in Nashik known for creating benchmarks for the construction industry since its inception in April 1994. The company has played a very important role in turning Nashik’s realty dreams into a reality.
Suyojit has many firsts to its credit. Like, Suyojit Gardens- the first mini-township in Nashik spread over 4 lac sq. ft., Suyojit Viridian Vallis- the first 100 acres integrated township in entire North-Maharashtra, Suyojit-Covai- the first “Senior Living” Project in North-Maharashtra (designed in Suyojit Viridian Vallis as a special cluster). Besides, Suyojit Group has the credit of bringing in the first IT Park in Nashik named Suyojit Datamatics Knowledge Centre. we have made a mark in Group Housing, Township Projects, Showrooms, Commercial Complexes and IT Centers. “Suyojit Sankul” is built in Roman Architectural Style, “Suyojit Chambers” and “Suyojit Heights” are constructed as per Contemporary Architectural Styles.
Q. 3. The Real Estate Regulatory Bill has already got cabinet nod. What are your observations on the bill?
A. The bill is definitely in the interest of the sector as it will enhance the credibility by providing uniform regulatory environment which will help good developers to have a strong footing in the market. The bill is focused on protecting the rights of the buyer and will also lead to elimination of unpropitious players from the market as it will combat existing issues resulting in more transparency and accountability. This in turn will boost the confidence of global investment in this sector thereby bringing in more structured capital. The reforms will enable speedy adjudication of disputes. It will provide a renewed boost to the levels of professionalism in this sector by standardization of transactions. It will also help the developers as few provisions like reduction in the minimum balance which needs to be maintained in Escrow account has been reduced from 70% to 50%. The bill will lead to better governance and India will emerge as a mature real estate market globally.
Q. 4. What further reforms in the realty sector should be initiated by the Central Govt to boost the sector?
A. Following reforms can be initiated by Central Government to boost the real estate sector
Administrative and Legal Reforms: The Real Estate Regulatory Bill should be passed and the related mechanism should be made functional at the earliest.
Banking Reforms: There should be reduction in interest rates. Approval of easy loans for recognized developers. As a major reform; on the basis of recommendation of architect and chartered accountant, developer may be given the authority to accord in-principle sanction of the loan. The terms of the same along with a check-list can be pre-fixed between the bank and the developer. This will ensure a single window clearance at developer level.
Tax Reforms: More fiscal concessions be extended to the real estate sector viz.,
· Reduction in stamp duty charges
· Giving rebate in guideline rates for getting the document registered in a particular period.
· Notifying “housing” as an exempted service from payment of service tax.
· Extending tax concessions to various components of housing.
· Further allowing buyers to claim future repayments of loan installments as investments for tax exemption in current period or permitting depreciation in property as set-off towards income, can give a big push to the sector.
· Implementing policies like deemed diversion (on self-declaration) for commercial and residential usage based on government guidelines.
· Increase in FAR thereby promoting high rise.
· Permitting flexibility in land use pattern to an extent of 5-10%. This means based on the demand, developer may be allowed to convert extra 5-10% inter-se residential and commercial usage. This is required because every area attracts different type of developmental activities during project implementation.
Q. 5. According to a recent ASSOCHAM study; Maharashtra, Gujarat and Odisha, combined together accounts for over ¼th share in drawing investment from public and private enterprises across sectors. Then what is the realty story, so far as Maharashtra in general and Nashik in particular is concerned?
A. This is being counted in absolute terms and is primarily because Mumbai is the commercial capital of India with most of the major companies having their registered office in Mumbai. Further, for real estate segment the prices of the properties in Mumbai is the reason for such finding. Barring Mumbai-Thane, Maharashtra is no different from any other state. As far as Nashik is concerned, it is very well connected to Mumbai and offers a congenial environment for investment and living. The residential and commercial units in Nashik are competitively priced viz-a-viz other Tier II cities. The following facts are clear indicators of the potential of Maharashtra and Nashik as far as the development of the region is concerned:
· Maharashtra has attracted more than 25,000 crore FDI in last one year
· Companies like Google, Microsoft, General Motors, and Chrysler are investing in Maharashtra, which will generate employment and encourage urbanization. This would help in pushing real estate market further.
· Nashik has been included in the list of smart cities, this will encourage more investment in sectors like IT, Automobile, Infrastructure and Housing etc.
· Nashik forms a part of golden triangle of Nashik-Mumbai-Pune, which has helped it emerge as a hub for Industrialization and urbanization which is positively impacting the real estate sector.