Tag Archives: indian property news

Transparency & institutional teeth needed for crowdfunding

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Bottom Line: A loose alliance of pre-launch investors in the Indian real estate operates on the lines of crowdfunding but it needs transparency & institutional teeth to make it an alternative fuding model.

Home Buyers Crowd, Public Perception, Public Opinion, Home Buyers' Survey, India real estate news, Indian realty market, India property market, Track2RealtyAfter reading in newspapers some of the successful global case studies about crowdfunding in the real estate, Rajeev Minocha is wondering why his investment was never labelled as crowdfunding. After all, he along with some of his school friends has been loosely funding this Pune-based builder even to buy the land and all of them have made money in the process. The developer has been product of the same school from where his crowd of financers belong to. The friendship goes years back and so does the level of trust.

In terms of the crowdfunding in the realty business, beyond the mutual trust the ROI has been much better than any other investment in his portfolio and in a span of nearly two decades now it has also helped the developer grow with his national footprint.

A closer look at the prevailing funding options of various developers suggests that some loose alliances of the nature of crowdfunding are always there in the Indian realty market. However, crowdfunding as a practice has not gained ground in this market primarily due to lack of transparency and institutional teeth.

Crowdfunding is the financial modelling of funding a project or venture by raising monetary contributions from a large number of people. However, this model needs three parties to take shape as a business model– the developer who proposes his project/idea to the crowd, people who support the idea with financial contribution and a moderating organisation that brings the parties together to take it on ground.

In the context of Indian real estate, this third crucial element of moderating agency is missing and often it is the mutual trust, like in the case of this Pune-based builder, that acts as the moderating agency.

Not all the developers in the Indian market have that kind of goodwill or resources. The developers themselves admit that this is a double-edged sword of funding in the Indian market and needs to be handled carefully. David Walker, MD, SARE Homes feels if properly regulated, the potential for crowdfunding could be tremendous. Without regulations, however, such a revenue-generation avenue could end up giving the real estate industry more of a bad name, since it may be misused by unscrupulous elements.

“With proper regulations, crowdfunding could be an answer to developers’ liquidity woes, attracting end-users and others into the market as investors. But regulation through SEBI or a new regulatory authority is imperative to ensure it is not misused by any stakeholder. Else, it will be the realty industry that ends up with more negative coverage due to the misdemeanours of a few,” says Walker.

Sandeep Ahuja, CEO of Richa Realty also does not sound very optimistic about crowdfunding in the present framework. He says it won’t be feasible in the immediate future. It will take some time for the concept to develop. Besides, the lack of regulator will dissuade the investors to invest in projects or developers not known to them personally.

“I don’t see much prospect of crowdfunding in Indian real estate. The reasons are high investment in real estate projects, low transparency levels, long gestation period of projects, low liquidity, project delays and lack of regulation in the industry. It is very difficult for an investor to evaluate an investment opportunity on a crowdfunding platform with limited details,” says Ahuja.

In a nutshell, while a loose alliance of initial investors might be behind some of the developers, often giving impression of crowdfunding to be a viable model of funding in the Indian real estate market, the concept itself is very confusing in the Indian context.

If only there is transparency with organised framework that acts as a moderating and regulating agency to monitor the funds being channelized for the given projects exclusively, crowdfunding can be one of the viable options of Indian real estate. That framework is nevertheless missing in the current market.

By: Ravi Sinha

BREXIT effect might hurt Indian property market

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News Point: might hurt the Indian property market with both inbound taking a hit and outbound investment at the cost of luxury investment at home.

BREXIT, BREXIT impact on Indian property, Britain leaves European  Union, London property market, UK property, India real estate news, Indian property news, NRI investment in UK, Track2Realty has always fascinated me and I feel this is the right time to make a move. After BREXIT not only the property prices will come down with the immediate effect, but the Pound conversion rate has already come down pretty low,” says Jagjit Kalra, a Mumbai-based HNI with business interests across Europe.

He feels the nose-diving shares of property developers in Britain after the European Union exit suggests that the prolonged spell of house price boom is over in that part of the world. This expected sharp fall in property prices (FTSE 100 fell record low) added with the weakening of Pounds (it fell by 10 per cent as an immediate setback of BREXIT) makes the UK properties quite attractive for high-end investors like Singh. If the Bank of England cuts down the interest rate, as expected widely, it will make investment in the UK more lucrative. 

Ground realities

  • BREXIT to crash market and weaken Pound rates
  • UK property becomes quite attractive for Indians with lower price point and lower Pound rate
  • It will affect investment into office space by European companies
  • Luxury buyers to invest into UK properties

Anuj Puri, Chairman & Country Head, JLL India seems to agree with this HNI when he reminds that when economic recession had hit the US, Indians took up a leading position among investors keen to take advantage of the falling property prices there. The British Pound is currently at a 31-year low, which itself provides an attractive rationale for foreign investors with an appetite to do so to acquire properties in the UK.

“There is no doubt that the UK – particularly cities like London – has always held a special attraction for Indians, particularly HNIs, with business interests or families there. Such individuals will certainly keep a close watch on the effect of BREXIT on UK’s property prices, and it is very likely that many more Indians will seek to invest there,” says Puri.

However, this opportunity for HNIs and NRIs in the UK property market is not necessarily good news for Indian property market. It may affect the PE and FDI inflows into the Indian property market as the investors are risk averse and would play wait & watch for the time being. This has an adverse effect on the Indian real estate market that is struggling to revive.

Moreover, several major IT firms such as Infosys, TCS and HCL Tech earn a third of their revenues from the EU. A possibility of EU slowing down will have an adverse impact on their revenues. The IT sector is a leading occupier of office space in India every year. India’s office market, that is the biggest trigger point for the growth of the sector, is largely dependent on the European companies to set up base in India.

For the last 18 months many European retailers entering India as part of their expansion strategy to new markets may now prefer to wait for more clarity in the financial market.

Nikhil Hawelia, Managing Director of Hawelia Group feels the impact would be definitely there but not uniform across the segment of property. According to him, the impact on the office up-take might hurt the Indian economy as well. High-end property market will suffer more than the affordable housing.

“I feel there are ways and means to deal with BREXIT effect and the policy makers might be taking some steps soon. The remittance cap by the RBI over the Indians investing in the foreign property needs to be re-looked at. Then the RBI should also think of lowering the interest rates now. The Indian market has to be made more attractive and competitive to deal with it,” says Hawelia.

Vineet Relia, Managing Director of SARE Homes, however, maintains that it is too early to comment on the impact of BREXIT on the Indian real estate sector.

“I believe that Indian real estate sector will continue to progress on the path of recovery in the wake of policy reforms taken by the government and resilient economy,” says Relia.

In this cost & benefit analysis, while the sector may have to weather an adverse impact in the short term for the NRIs and HNIs like Singh, it is time to make the best of opportunities available in the UK market. The only catch here is the fact that the Reserve Bank of India (RBI) has a cap over the annual overseas remittance. The RBI has capped the overseas property investment at $200,000 per person per year.

Analysts still feel this remittance cap would not deter the investment into the UK property, keeping in mind the average cost of apartments across the major cities of Britain. And the fall in prices and the fall in Pound rates make it ever more tempting for Indians to invest in Britain.

By: Ravi Sinha

Piramal Realty launches Phase II of Piramal Vaikunth

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News Point: The second phase of development at will launch two residential towers: Vahin & Vrisa. 

Piramal Vaikunth, Piramal Realty, Mumbai real estate, Luxury property in Thane, India real estate news, Indian property news, Real estate news magazine, Indian Diaspora, NRI investment, New house launch, Track2Realty has launched 170 apartments at its residential towers Vahin at Rs 9040 per square feet and Vrisa at Rs. 9280 per square feet as part of Phase II of Piramal Vaikunth. This price is limited to the first 40 units only. Bookings commence from June 18, 2016.

The 2-BHK and 3-BHK apartments on offer range from a carpet area of 908 square feet to 1262 square feet. Each residence is fully air-conditioned, offering quality marble flooring in the living-room and bedroom, and private balconies. Both towers are positioned directly in front of the clubhouse and offer panoramic views of Thane creek.

Commenting on the launch Anand Piramal, Executive Director, Piramal Group said, “Piramal Realty aspires to be the most quality conscious and the customer-centric real estate company in India. There is a dearth of quality development in the city, and we have seen that there is a lot of potential for a high quality product. This is reflected in the overwhelming response we received for Phase 1 of Piramal Vaikunth, where we attracted buyers from South Mumbai, Western & Eastern Suburbs of the city as well as international markets such as USA, Singapore, London and Middle East.  Today, we have pre-launched Phase 2 of the project with two towers, Vahin and Vrisa, and look forward to receiving a positive response to our premium offerings.”

Piramal Vaikunth is a residential complex spread over 32 acres, featuring high-rises, townhouses and world-class facilities. The development intends to provide residents with a temple, a retail boulevard, a community center, multi-purpose badminton and basketball courts, squash courts, swimming pools, mini cricket ground, state-of-art gymnasium, day care & crèche, cafes & restaurants, convenience stores, guest suites & banquet halls, etc.

Housing.com to achieve profitability in 18-24 months

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News Point: Housing.com claims prepare a blueprint that would lead to achieve profitability within the next 18 to 24 months.

Housing.com, Property portal in India, Online property search, Best property portal in India, Online home search in India, India real estate news, Indian property news, Home Finder, NRI investment, Track2RealtyHousing.com says that driving profitable growth is a top priority for the management team and that it has a robust plan in place to become cash flow positive by late-2017 to mid-2018.

The Company, in the last 6 months, has taken several key steps to set the business on a path to profitability, including focusing the business model & strategy, aggressively scaling up monetization and optimizing its costs.

At the end of last year, Housing.com focused its business on home buying and selling, the largest and most lucrative segment of the real estate market. Subsequently, the Company carried out a reorganization under a new leadership team to establish a single and unified focus on home buying and selling in the top 7 metros.

As part of this exercise, the Company discontinued non-core categories like Rent, Land, Commercial, PG & Hostels etc. and improved operational efficiencies across the board. Compared to six months ago, the Company has reduced its cost base by 2/3rds or 67% – while strengthening or retaining all key capabilities for future growth.

Beginning this year, the Company has initiated aggressive monetization efforts and exhibited strong performance with revenues growing on average 200% month-on-month and on track to achieve $10 million this fiscal year, a 10x increase from the previous year.

In addition, Housing.com’s visits per month have increased 3.5x in the last six months from 1 million to 3.5 million per month and will be at least 50 million visits this fiscal year, likely emerging as the highest for home buying and selling in the country.

Commenting on this, Jason Kothari, Chief Executive Officer, Housing.com said, “We are extremely pleased with the Company’s transformation in the last 6 months. With all of the business’s fundamentals now in place, Housing.com is set to achieve its revenue and cost targets and poised to attain both exponential growth and cash flow profitability within 18-24 months.”

The renewed focus on the home buying and selling real estate segment has resulted in tremendous growth for Housing.com’s business. The Company has revamped its management team by hiring new, experienced and accomplished industry professionals and also through a series of internal promotions.

The investor sentiment has been extremely positive, with the Company having raised a fresh round of financing from SoftBank in December of INR 100 cr. The Company recently also received a personal investment from Vineet Singh, ex-business head of 99acres, a competitor of Housing.com.

Piramal Fund invests Rs. 425 crore in a Lodha Project

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News Point: Piramal Fund Management (PFM) has invested Rs. 425 crore in a Central Mumbai project being developed by Lodha Group.

Piramal Fund Management, Lodha Group, Private Equity in Indian real estate, PE Fund in real estate, India real estate news, Indian property news, NRI investment, Track2RealtyPFM has committed Rs. 425 crore to a project being developed by a 100% subsidiary of Lodha Developers. The investment is towards construction of premium residences being developed by Lodha Group in a project with more than 5 lakh square feet of saleable area.

The project, which is already 40% sold, is in the midst of construction. The deal has been structured as a fixed return debt investment with periodic coupon payments and has an appropriate security mechanism in place including hard asset cover as well as escrow of receivables.

PFM is uniquely capable of catering to the entire capital stack – right from early stage equity to late stage debt and construction finance and is therefore able to act as a perpetual provider of capital for the real estate development life cycle.

Khushru Jijina, Managing Director, Piramal Fund Management said “We are pleased to lend to the Lodha Group; this is our first structured deal with the realty developer. We look forward to deepening our ties as we evaluate their portfolio of projects.”

Abhishek Lodha, Managing Director, Lodha Group said “We are pleased with Piramal Fund Management’s decision to invest with us given the experience, scale and depth of their financing platform. We are constantly looking to grow our pool of credible funding partners and look forward to a long term relationship with them.”

PFM also recently announced the ‘Piramal Preferred Partner’ program whereby its selected existing development partners are allowed to draw from a pre-sanctioned limit in order to pursue opportunistic acquisitions.

Lodha Group has recorded sales of over Rs. 8,000 crores in FY 15-16, sustaining market leadership and unparalleled growth across market cycles.

Naushad Panjwani quits Knight Frank India after 15 years

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News Point: After 15 years of stint with Knight Frank India, Naushad Panjwani floats business venture Mandarus Partners.

Naushad Panjwani, Knight Frank India,  IPC in India, Mumbai real estate, India real estate news, Indian property news, Track2RealtyNaushad Panjwani, Senior Executive Director, Knight Frank India has moved out of the international property consultancy after a 15 year long association. Naushad will now be floating Mandarus Partners as its Founder & Managing Partner.

At Knight Frank, Naushad has always been in leadership roles heading businesses across geographies. As the Senior Executive Director, his role encompassed a strategic focus on Business Development and he mentored an array of verticals and departments across geographies.

An ace dealmaker, in the last few years he has been a rainmaker for Knight Frank, clinching several important businesses. He is also the Past President of Bombay Chartered Accountants’ Society and on the boards of many institutions.

His new venture Mandarus Partners will focus on Cross Border Mergers & Acquisitions. It has a clutch of partners who are ex CEOs of reputed listed companies.

With a commerce background Naushad is a Fellow Chartered Accountant with the Institute of Chartered Accountants of India.  A former President (2013-14) of Bombay Chartered Accountants’ Society, he has experience of more than 23 years across geographies.

He has been with Knight Frank India since 2001 and has handled various portfolios from CFO to heading various businesses. Now as the Executive Director – Corporate Projects, he has focus on cross vertical collaboration and selling, sustainability of business model of all the verticals.

With strategic focus on the West and Special Projects, he has also mentored HR vertical, key client engagement initiatives and Residential Agency business.

Prior to joining Knight Frank, he ran a consulting firm specializing in tax, audits and management consultancy. He is a WIC member of Indo American Chamber of Commerce and member of British Business Group, European Business Group and Indo German Chamber of Commerce. Naushad is the co-author of the book ‘Real Estate Laws’, one of the ‘best seller’ in the domain having sold over 7000 copies.

Naushad is also in the jury board of Track2Realty Brand X Report.

Nahar Tower of Adyar gets A Rating

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Track2Realty Exclusive

News Point: Track2Realty Investment Magnet Report 2015 picks up 100 best housing projects across India.

Noah Group, Tower of Adyar, Chennai real estate, Chennai property market, Super luxury housing in Chennai, NRI investment, India real estate news, Indian property news, Track2RealtyLocation: Lattice Bridge Road, Adyar, Chennai

Project type: 4 BHK Condominiums

Price: Rs. 4 Crore

Project execution lifecycle: March 2015-December 2018

Nahar Group has proven expertise in destination development and with their flagship project ‘Nahar Amrit Shakti’ at Chandivalli in Mumbai they have created luxurious villaments also. Yet, with this small project of 56 units they seem to have redefined their own architectural craftsmanship and in the process promises to set a new benchmark of luxury that very few thought in Chennai.

These luxurious sea-facing 4BHK ultra-modern global apartments with traditional pooja room are crafted to perfection and provide a feeling of openness without compromising on privacy.

Tower of Adyar promises to offer the residents a unique experience of exclusive rooftop amenities starting from café to amphi theatre to state of art, and gym to spa. Interior living areas are elegantly integrated with scenic greens and the stunning ocean view, thus symbolising perfect harmony.

Tower of Adyar, nestled within Adyar’s finest neighborhood is just a stone’s throw away from city landmarks and is well linked with connectivity hubs such as rail, metro and airport.

Located on L.B.Road in Adyar, one of the prime area situated by the southern banks of the Adyar River, the property is closely connected with the IT hubs, educational institutions, hospitals and main markets.

In terms of competitive advantage, it cannot only challenge some of the most prized luxury properties of Chennai, but across India as well.

Track2Realty Rating: A

  • Location & Aspiration: 8/10
  • Physical Infrastructure: 8/10
  • Social Infrastructure: 7/10
  • Appreciation Potential: 6/10
  • Competitive Advantage: 8/10
  • Rental Potential: 5/10
  • Launch2Sales Ratio: 5/10
  • Construction Quality/Timelines: 7/10
  • Livability Index: 9/10
  • ROI Cycle: 5/10

Gold strike proves golden for real estate

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Bottom Line: Real estate preferred over gold by women on this Gudi Padwa festival.

Gold, Realty Investment, India real estate news, Indian realty news, Indian property news, Track2Media, Track2Realty,Gold and real estate have been two most sought after investments in India. While the men preferred to invest into physical asset of property, the quest of women has traditionally been for gold. However, on the eve of Gudi Padwa this year in Mumbai, women seem to have taken a conscious call to be pragmatic and understand the long term value of holding a property. As a result, women in general and single women in particular seem to be a major catalyst in the housing market of the city.

Suchitra Sen, a single woman in Mumbai is a compulsive shopper of gold jewellery. The festivals are ideal time for her and on each and every festival she buys one or the other jewellery product. However, on Gudi Padwa this time she has taken a conscious call to invest in real estate. The media reports on the strike in the jewellery market has somewhat dampened her spirit with the precious metal.

“I feel this is not the right time to invest in jewellery. The real estate looks quite attractive at this point of time. The kind of properties that are available today at the attractive price point and loaded with discounts & freebies make real estate worth an investment now. May be post the festive spirit when the economic outlook is even more positive the property price will go up,” says Suchitra.

The analysts tracking the market in this part of the world are not surprised. They maintain that for the last few years the trend is changing and gold has slipped to alternative choice and definitely not the first choice of young women. They prefer to have real estate in their portfolio.

As a matter of fact, women nowadays are rather selling their gold jewellery to invest into real estate. The city of Mumbai is full of working women and they understand the value and worth of investment in terms of the Return on Investment (ROI). Hence, there is less emotional connect for the gold now.

The evaluation of historical data also suggests that while gold has appreciated with a Compounded Annual Growth Rate (CAGR) of 12-13 per cent in the last over three decades, the CAGR growth rate of residential property has been no less than 17-18 per cent.

It is hence no surprise that single women are nowadays a major demand driver in the metropolitan cities like Mumbai. The women who are professionally doing well and prefer late marriage or no marriage prefer to have a house of their own. It is the better security than gold; something that also saves them from hassles of answering to landlords about the reasons of their single status.

Take the case of Rachita Verma, a lawyer by profession, who is buying her second house on Gudi Padwa this year. She feels the lure of gold no longer attracts professional women like her. It used to be a security for women who were married in traditional societies but does not hold true in modern context.

“Had it not been strike of jewelers, I would have rather sold some of my jewellery at this point of time. The price of gold is relatively higher now and from here the chances of appreciation is not that high. I personally believe women should be more rational than emotional about their holdings and better invest in real estate nowadays,” says Rachita.

The strike of the jewelers has further tilted the sentiments in favour of the real estate today. This is seen as more safe investment at this point of time. Moreover, traditionally the Indians have shied away from controversial investments where the controversy could lead to price volatility. And hence, gold is clearly losing out to real estate across the Mumbai Metropolitan Region (MMR).

In a nutshell, while the trend of women preferring real estate to gold is not new, the strike in the gold market this year has ensured that real estate in Mumbai hits gold on Gudi Padwa this year.

Pune demands ready to move properties

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Bottom Line: Pune homebuyers, like rest of India, now only trust ready to move properties.

Gera Song of Joy, Gera Properties, Pune real estate market, India real estate news, Best housing projects in India, Indian property news, Track2RealtyRukhsana Khan wants to buy a house in Ambegaon Budruk of Pune. Her property search has led to a relatively better priced property at Rs. 4600 per sq feet that is expected to be delivered in the next couple of years. A ready to move in flat would cost her a price of Rs. 5900 per sq feet.

This difference of Rs. 1300 per sq feet means that she has to bear an additional Rs. 14,30,000 for an 1100 square feet of apartment. This premium for a ready apartment is too high a price for this government employee. Yet, she is determined go a ready to move property only.

“If I could not arrange for the finances, I will better wait for a few more months than go for an under construction apartment. The execution risk is too high nowadays and often it is not just the fault of the developers but some policy issues also delay the project timelines for a few years,” says Rukhsana.

She is not alone in having apprehension with the under construction property. As per a survey by Track2Realty, nearly two third of prospective homebuyers in the city, 62 per cent to be precise, prefer ready to move property. Though the aspiration for a ready flat is less in the Pune city when compared to all India figure of 78 per cent going for ready apartment, it is still a high number of homebuyers in Pune who are apprehensive with under construction property.

The inventory overhang might be lesser in Pune, just 13 months, compared to other cities, this nevertheless raises a question as to why the homebuyers are shying away from under construction properties in the city. More importantly, what are developers doing to end this crisis of confidence? Developers have their own reasons to believe that the data only shows half the truth.

Parth Mehta, Managing Director of Paradigm Realty contests it saying that in general, homebuyers have become well informed and scout for properties which are in advance stages of construction with a fear of double wham my incase of delayed possession by builder leading to extended EMI as well as rents on tenanted houses for personal use.

“Developers are making all efforts to comfort the homebuyers to gain their trust. They are nowadays coming out with subvention schemes to attract end users with minimal down payments, as low as 5 per cent of agreement value at booking and maximum during middle stage of construction and possession,” says Mehta.

Arvind Jain, Managing Director, Pride Group says that the National Housing Bank (NHB) mentioned Pune’s inventory of unsold residential stock as 13 months worth, which is very low when compared to other cities. This is because consumption of residential real estate in Pune continued to be healthy even during the lowest point of the national real estate slowdown. There can be many reasons for unsold inventory – muted market sentiment, a lot of supply being in the early stages of construction, housing projects being constructed in the wrong locations, and over-pricing.

“In Pune, some supply is undoubtedly in locations which have not picked up because of lack of infrastructure, and there are also quite a few projects where developers have been too adventurous in their pricing. The fact that Pune continues to perform better than other cities on appreciation indicates that most investors have navigated away from the non-lucrative propositions,” says Jain.

Kishor Pate, CMD, Amit Enterprises Housing reminds it is pertinent to note that many of the unsold projects in Pune are the result of deficient planning on the part of the developers. They have chosen flawed or hopelessly futuristic locations where people are not interested in moving, and/or have included high-end amenities that drive up the overall cost beyond what buyers are willing to pay.

“The decreased buoyancy in the housing market is also responsible. Many buyers are indecisive since they expect a correction in prices. However, it has become evident that Pune will not see a correction, so these buyers are now coming into the market with firm purchase decisions,” says Pate.

It is true that the homebuyers are being circumspect about investing in under construction projects. But equally true is the fact that they are showing confidence in projects by established developers with a strong reputation for delivery. The data that is lending credence to the unsold inventory is mostly in the non-descript locations where the lack of infrastructure has not let the potential of the market transform into the performance.

Developers, on their part, maintain that it is incorrect to say that buyers are shying away from under construction projects in general. They are shying away from developers who they have no reason to trust and with those developers who have not built up a good track record.

They are also shying away from projects being constructed in locations with no support infrastructure which are likely to cause issues in terms of basic utilities supply, or where the developer has not obtained all the necessary construction permits. There is very good demand for under construction projects by reputed developers who are also showing satisfactory construction progress on the ground.

The ground reality is that given the choice any homebuyer will go for a ready to move property. But then the ready apartment has its own cost of premium. This is not something that every middle class homebuyer would be in a position to afford.

Under construction projects have certain other advantages than pricing. A homebuyer can get it customized as per his needs. But since the execution risk is high there people generally do not go for it. Having said this, the track record of Pune developers vis-à-vis maintaining the timelines and being true to the commitment is much better than many other markets in the Indian cities.

Venkiah Naidu promises Real Estate Bill in this Budget session

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With agency inputs

Minister promises Real Estate Bill will be regulation and not strangulation. 

Venkaiah Naidu, Union Minister for Urban Development, Real Estate Regulation Bill, Realty Bill in Parliament, India real estate news, Indian property news, NRI investment, Track2RealtyUrban Development Minister Venkiah Naidu on Monday, March 7, confidently said that the Real Estate Bill will become a reality during the ongoing Budget session of Parliament.

“Real Estate Bill is going to be a reality in this Budget session itself. I am holding discussion with all stakeholders,” he informed domestic and global investors at the ‘Happening Haryana’ conclave in Gurgaon.

Stressing that the law would be a ‘regulation and not strangulation’, he said, ‘nobody should worry except the fly-by-night operators’.

“We are also working on ease of doing business and ease of approval and permission. We have got positive signals from all parties,” the Minister said.

The Real Estate Bill is pending in Parliament. Last week, the Congress wrote to Prime Minister Narendra Modi and Naidu, asking them to pursue the bill passed in the first leg of Budget session of Parliament.

Real Estate (Regulation and Development) Bill was introduced in Rajya Sabha in 2013. It was referred to the Standing Committee which submitted its report in February, 2014. After the NDA government was formed, the bill was again referred to a Select Committee of Rajya Sabha, which submitted its report on July 30 last year.

The proposed real estate law is aimed at protecting the interest of the buyers and sellers.

The Cabinet had in December 2015 cleared 20 amendments to the bill which seek to regulate transaction between buyers and promoters of residential real estate projects by establishing state-level regulatory authorities.

Naidu also assured all help to Haryana for infrastructure development in the state.

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