Govt. Forms Central Advisory Council for Active and Effective RERA Implementation

A 30-membered Central Advisory Council (CAC) has been set up by the central government of India for counselling on the implementation of the Real Estate (Regulation & Development) Act, 2016. The Minister of State for Housing and Urban Affairs will be the Chairperson of the council. Excepting the chairperson, the council will also have 8 members from the central ministry including Niti Aayog CEO, Secretaries of Ministry of Housing and Urban Affairs, Department of Revenue, Economic Affairs, Department of Industrial Policy and Promotion and Ministry of Corporate Affairs, showed a gazette notification from the Ministry of Housing and Urban Affairs.

This CAC will monitor whether homebuyers have been provided proper protection under the central Act with the proper implementation of RERA across the country. Chairpersons of Maharashtra, Gujarat, Madhya Pradesh, Assam and Karnataka RERA have already there in the council. Standing for the homebuyers’ there will be president of Forum for People’s Collective Efforts and Federation of Apartment Owners’ Association’s Chairman. The council also have representatives of real estate agents and construction workers. As per the notification the chairperson of the council will have the power to incorporate any individual or organization as a technical representative to take part in the meetings of the council.

Abhay Upadhyay, the President of Forum for People's Collective Efforts (FPCE) said, “Homebuyers and their interest are the focal point of RERA and its proper implementation would need constant feedback coming from them. We are thankful to the government of India for recognizing our efforts over the years in getting RERA enacted and thereby protecting the interest of homebuyers.”
There will state governments’ representation in the council as well. The five states that have been included in the council are- Uttar Pradesh, Haryana, Odisha, Tamil Nadu, and National Capital Territory of Delhi. Reportedly, the Managing Director of National Housing Bank (NHB) and CMD of Housing and Urban Development Council (HUDCO) will also be part of the council.

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Few Important Guidelines About REITs and InvITs

SEBI- the Securities and Exchange Board of India has introduced an online listing process to speed up the registration process of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). Here we discuss about the benefits that could be on your way through investing in these securities. Investing in these securities will raise resources to meet a funds crisis at present. Experts also suggest that these bonds could generate as $20 billion. The entire process of registration is a quick and cost-effective process. It seems like this announcement has bought some good news for the industry stakeholders. After registration, both the REITs and InvITs are extensively profits the real estate and the infrastructure sections.

REITs- It’s a kind of mutual fund that will boost the investment volume of the real estate sector by raising funds from the individual investors and directly investing bulk real estate. In return the unit holders will receive a share in profit proportionate to the amount contributed.

How it will benefit developers
REITs will bring financial stability in all real estate transactions. Especially developers who have been combating with the increasing debt volume, it’s a safe choice of investment with less market risk. In case there’s any shortage of fund during any project development, this investment will pull in the inflow and expedite the development process as well. Again, funded that have locked up in various on hand projects could be released to ease up other development processes.

For the investors 
It’s just like investing in share market with lesser risk involvement. Investors will get rental returns along with their monthly investment. Without direct property purchase, an investor can still earn from the invested units and count the returns. It will reduce the financial reliance on the banks as well. Investors can invest whenever they want and when feasible they can withdraw it as well.
In anyone invest in REITs any amount of small money will do. If you want to buy property in Kolkata which seems out of your reach, mark our words investing in REITs will be much cost-effective to you. It’s a good substitute to real estate investment as well as income-generating provision.

InvITs- InvIT provides the scheme to invest in the infrastructure sector. Here fund is collected from general public sector and directly channelize in many infrastructure projects across the country either thorough a Special Purpose Vehicle (SPV), in case Public Private Partnership (PPP) development, an investment can only via SPV.

InvITs provide long-term refinance to infrastructure developments. Free up developers existing capital for investing into a new one. Investing in InvITs will boost the infrastructure sector. Thus, it aims to attract foreign investments, so that developers hold to wide spread portfolio of infrastructure assets.

LNN- (Liyans News Network)





-LNN (Liyans News Network)

Safety Measures For Monsoon

Monsoons satisfy the thirst of summer. It refreshes panorama. But rain imports some unwelcomed germs in the households, which must be avoided to lead a healthy lifestyle. When rainwater revitalizes the nature, a little precaution in our daily lives is required from falling ill. To enjoy a healthy, happy monsoon people have to be a little watchful.

Here are few straightforward tips that you should follow during this season -

• Avoid clogging your local drains. Get rid of roadside open/fried food.
• Water gets contaminated in this season, which leads to fragile digestive system. Keep a healthy diet plan and try to consume filtered or boiled water.
• Clean the vegetable and non-veg items well before putting them on flame.
• Drink plenty of water. Keep away from preservative outside drinks. Try herbal tea for rejuvenation.
• Avoid walking in rain. A little skin touch with stagnant water can cause several skin problems.
• If anyhow your feet get wet, try to rinse them with fresh water as early as possible; don’t stay in wet socks and shoes.
• If you get drenched, don’t let it get dried under fan and Ac. Keep an extra pair of clothes at your workplace.
• Keep medical kit updated with medicines that will help you out in case of any emergency.
• Monsoon is the celebration time of mosquitoes. Make sure there is no place for stagnant water. Don’t go sleep without mosquito net and mosquito repellent.
• Take bath twice a day. If needed, use antibacterial soaps for better hygiene.
• Take vitamin C for boosting your immunity system.
• Monsoon brings eye infection too. If there is any itching sensation into your eyes, try not rub it with dirty hands. Consult an eye specialist instead.
• In case you are about to buy property in Kolkata, this is the right time to visit property sites to determine the quality of the construction and area infrastructure.
• Make your home shock-proof with a good quality fibre wiring system. Don’t touch switches in wet cloths.
• Check out the weather and traffic update before you start from your home.


-LNN (Liyans News Network)- To avail Kolkata’s most advance infrastructure choose flats in Rajarhat. Explore available property details on our online realty portal. Buy/Sell/Rent property online. 

‘Housing Challenge’ Another Effort to Push Affordable Housing Sector

After land provision, additional FAR, tax exemption, financial aid to the buyers and advanced infrastructure status now centre is not living no stones unturned to promote the affordable housing sector under PMAY. The objectives behind affordable housing development are to wipe out illegal occupancy and providing homes for economically weaker section of the society. Right now along with the speedy development process infrastructural growth is also needed in parallel.

Places that have been allotted for the affordable housing development are either remote suburbs or the peripheral areas of the urban towns. Here a point should be kept in view that raising development at remotes areas might be easy for the land disbursement but at the same time it’ll increase the day-to-day basis transport cost for the residents. Affordable housing belt in States like- Bihar, UP, Tamil Nadu and Andhra Pradesh are developed around their working places. This way the cost of the transport can be under control form the residents’ viewpoint.

Reportedly, alike many other major cities affordable flats in Kolkata is also in pipeline and hardly there’s any advancement observed in last few years. Reinforcing the success of Smart City Challenges, now the government is planning to come up with a ‘housing challenge’ to again promote the affordable housing sector under PMAY flagship. The idea behind this ‘housing challenge’ concept is to deploy most economical technology for affordable housing development purpose. Central government has already chosen 25 of such cities across the country, where the government want to introduce this pilot project. The National Buildings Construction Corporation (NBCC) is assigned to prepare the required models for this challenge.

The officials said that challenge will require participants to propose their respective method of technologies that would satisfy the core objective of this challenge effectively. The proposal will have to look at the number of total residential units planned inside a housing compound and financial models suitable for the same as declared by NBCC. Picking up the industrial belts for affordable housing development purpose is one of the methodical moves by the government to increase the demand of affordable housing as well as increasing the job opportunities of the LIG and EWS classes which includes 300 towns and cities of the country. It’s significant to be highlighted that the difference between LIG and EWS apartments is EWS apartments are for people, whose monthly income is lesser than 5000 and LIG apartments are for those, whose monthly income is between 5000-7500.

Renowned developers that have already enter into affordable housing development are-Essel Group, DBS Communities, Tata Housing, Mahindra Lifespaces and Vastushodh Projects etc. Experts, think that this new-age construction techniques will provide quality and standard architecture for homeless and economically weaker section of the society. It’s expected that with all these initiatives government will turn into affordable housing a sector a popular sector for investment. Affordable housing sector happens to be the only sector where a minimal amount of investment can get you a healthy return than your anticipation.  NBCC has proposed several (Public Private Partnership) PPP models by far.

-LNN (Liyans News Network)

Real Estate Slowdown- A Retrospective Overview

Indian property prices are to go up in coming days. The resurgence of property price attributes to the recent couple of policy changes of Indian government. Government is now aiming to attract global revenue into domestic economy. Affordable housing sector is supposed to be the key resource with which government is targeting to bring in. Meanwhile, rumour has it, both residential and commercial business in the country are about to see a corresponding slowdown.

At present developers are busy in reframing their business and the procedure of project registration with regulatory authority and they are very much annoyed with the rigid provisions of RERA. Sustaining business under RERA intervene won’t be that straightforward. There’s a double digit jump in home loan sector derived from loans of lesser than 25 lac in value. Affordable housing sector alone contributed 30% of the total procurement. 33 percent overall surges in home loan over a year earlier.
There is also another report which far from the original which said that there was a decline of one per cent in the number of home loan disbursements of over Rs 25 lakh in value. It can be mentioned as a slowdown anyhow, even though the margin is negligible. Up till now this calculation stands less than a fourth of the total number of home loans disbursed. Especially, the share of loans of more than Rs 25 lakh, disbursed for home loans came down to 24 per cent from 30 per cent the prior year. This holds solid and glaring that in 2016-17 a higher number of people preferred to seek loans of minor denomination, in comparison with 2015-16. Also, regardless of a decline in the number, the total number of loan disbursements during the year raised 23 per cent.

Speaking about the low budget flats under PMAY, it’s foreseen with this pace of project development it’s impossible for affordable housing sector to meet the deadline of 2022. Both the rural and urban projects under central government flagship are mostly on calendar. Even 30% of the project development is not accomplished in a right manner. Low-budget flats in Kolkata and its outline areas are yet to be materialized. Between FY 2016-17, a new trend has been observed in home loan disbursement sector i.e. - a huge slog of 48 per cent in the number of loans of up to Rs. 2 lacs which is also an upshot of government’s push to promote ‘Housing for All by 2022’. In this horse race luxury housing sector has been constantly encountering lower market demand successively. New project launch and luxury property sale have been notably reduced post GST. Yet mid budget flats, those are ranged under Rs. 50 lacs are still in demand. But residential properties with price tags of Rs 1 crore and more are detectably going under on-hand inventory category. These hi-end properties are mostly from the tier I cities.

From its inception till now affordable housing sector has been the centre of the attention of the administrative policies. Accordingly, the developers have been directed towards the development process of budget housing instead of luxurious one. Thus, there is a decline in contention for hi-end residential developments.

-LNN (Liyans News Network)

RERA To Curb Activities of Real Estate Agents

State Government of Karnataka has submitted state RERA regulation. Over the preceding years property price has been blown up and set out of mass reach in cities like Begaluru, Pune, Delhi and Mumbai. This occasion had given birth of too many brokers with trivial knowledge of real estate, who used to operate quite smoothly and blossomed in their respective business as well. Now, their business might undergo some serious setback post RERA age. These small time brokers and developers are the sole causes of ill-portrayal of Indian real estate to the global real estate.

The state RERA rules highlights that, not only projects, it’s also mandatory for the realtors to get registered under RERA authority, in three months starting from July 10, 2017. Defaulters will be punished under state RERA regime. They will have to comply with the governmental ruling and intervene to up and continue their realty practice. Earlier, they used to be indispensible especially when the requirements are up for residential ones. They used to draw high commissions and overcharge the potential homebuyers.

Registration with the regulator is obligatory because only registered real estate agents can only survive their business practice. In this way they would be accountable for their business activities. RERA will publish registered and rejected application on its website, as part of the rule.

RERA will set the realty business free from fraudulence 

Some industry experts say that Karnataka RERA rules aim to protect buyers’ rights on large scale and retrieve more transparency into real estate industry. It’s calculated that about 70% of the brokerage firms will close down their business or will merge with relatively large real estate companies with experience of 2-3 years in realty practice.  Most of the agents are turning away registration, as they are finding RERA rules hard-wearing. It’s because of the market slowdown these agents ruled the business. The penal factor of RERA has made the situation even tough. RERA will clog all possible easy ways for the brokers and developers to reach up to the latent customers.

According to a statistics about 10 lacs real estate brokers in real estate are neither registered nor regulated. Many of them don’t have any real estate business background and under qualified for this business. These agents used to have their own sales agenda in fleecing their customers. Lack of proper regulation indulged them in doing their own. Now, under RERA only registered brokers are allowed to carry keep up their business.

Real estate will be no longer considered as a sector of unprofessionalism 

Taking advantage of real estate ignorance of the clients won’t be spared under RERA stricture. Homebuyers will be thoroughly protected in every available service from the brokerage sector. New rules will swipe away non-credible brokers from the realty business. Brokers will have to discontinue their business if found guilty under new regime.

_LNN (Liyans News Network)- Buy property in north Kolkata and avail 7.5% post GST discount. Visit our online property portal to have detailed information about such properties. Enrich your home-buying experience with us.

Developers To Put To Use Precast And Dry Well Systems To Speed Up Affordable Housing Project

Big news for budget homebuyers more volume of affordable projects are going to hit the market in no times. It’s not that government has approved more projects than scheduled. It’s for meeting the timeline of central government flagship project ‘Housing for All by 2022’. In order to develop comprehensive projects, now developers are aiming to use up new construction techniques like aluminium shuttering, precast concrete technology and fast drying systems to deliver projects within the specified time limit. Thus, it’s predictable that along with the other metros residential property sale in Kolkata will also speed up. Highlighting Kolkata as property price in Kolkata is cheaper than the other states, coining which Kolkata holds the capacity to lure the investors from various blocks of the income brackets.

Property consultant company Colliers International suggests that particularly after the Real Estate Regulatory Authority (RERA) Act underlines timely deliverance of projects, developers are considering advanced techniques and automation for rapid development of their respective projects. Adoption of modern technologies will help them to a greater extent for timely deliverance and well as top keep going under stringent RERA norms. Delay in deliverance will cost them greater than their business.

Buyers now demand fast completion of a world-class quality project against their investments. Besides, the growing need for commercial properties side-by-side the residential ones also insists faster development of the due projects. Thus, it has become the need of the moment to use advanced construction materials and mechanism to meet the market demand. The construction business in India is presently on the verge of taking up new technology, digitization, advanced materials. Artificial intelligence is the latest addition in the block. It has the potential to singlehandedly sort out all-inclusive issues of the development process. These technologies are not only economical but reduce the input of extensive manual labour, advanced earthquake resistance, more durability than traditional constructional process such as- higher carpet area, smooth finish on walls and lower on continuance..
Sources say that about 2 million affordable homes are yet to be built under PMAY scheme across the country and all these need to be completed within 2022 withal.

The entire development needs to be certifiably durable so that affordable housing sector can attract heavy investment and bring realize bigger success to union government’s one of the most ambitious projects till this time. Many private developers have started using these technologies to finish their affordable housing projects and to boost this noble initiative of the government for providing homes to the homeless and economically weaker section of the society. Experts say that today’s affordable housing is tomorrow’s big ticket. Affordable housing is currently going through the roofs with government’s incentives and reduced home loan interest facilities. It’s also discounted from GST ambit. There is also significant (20-25%) growth in housing loan business coming from the demand of apartments priced under 30 lacs.  Currently, developers are full of hands with attractive options of budget apartments.


-LNN (Liyans News Network)

Does Big Lay-Off In IT Sector Impact On Realty Market? – An Overview

Indian IT companies are in process of firing employees on massive scale. This move is subsequent result of sluggish market prospective anticipated in India’s 150 billion dollar IT industry. Earlier in this FY, country’s apex trade body ASSOCHAM warned about industry growth prospect aggravated by the rising rupee value leading to lower realizations for software export. The IT sector of India has been the major employment resource of the country. But the recent news of job cut rates in the IT industry rattles the real estate industry as well.

We will tell you how the process will hit the realty market. The demand of residential apartments as well as commercial apartments will take south at the side of downsizing in the country’s major job driver. Mostly, salaried people buy home on bank loans and do all EMI repayments with their monthly income.  For instance a large number of residential units have been bought on bank loans as the close proximity of the IT hub of West Bengal. Simultaneously new start-ups are blooming with the requirements of mid-ranged commercial space requirement nearby the physical place of the IT industry. Now job escalation would make real estate industry suffer in a big way.

As per the recent market speculation more than 1 lac IT people will lose their jobs in the coming FY. America will reportedly stop doing the out sourcing which will straightway affect the BPO industry of India. On the other hand technological development, automation and artificial intelligence will be the watchdog of the industry progress. Big IT giants won’t feel to extend the business capacity or in other words they won’t have significant reasons to buy commercial property in Kolkata and other major cities of the country. 1 lac job losses would roughly render a slash of 8 million sq ft in real estate volumes, considering that per employee space consumption in the IT sector today is roughly 80 sq ft.

Kolkata’s IT sector is relatively small than major IT hubs in Bengaluru, Gurugram, Hyderabad and Pune. For, the city is not that largely dependent on the IT industry. It’s expected that Kolkata’s real estate market will be less terror-stricken by the IT cut down. Government has assured there will be no such major retrench in Indian IT sector. Government has planned to open 3 huge IT parks in Kolkata- one each in Durgapur, Darjeeling and Kalimpong.

Affordable housing sector is the only steady investment sector which is continuously attracting buyers from the bottom of the pyramid. Currently it has emerged as the growth driver of the realty industry. IT industry will have to seek micro and small medium enterprise for their necessary production, in joint collaboration. There will be increasing opportunities for the start up industry in the coming days, which will lead more job opportunities in micro market.


-LNN (Liyans News Network)

Home insurance in India rises at over 10%

Mortgage lenders are pestering borrowers to sign up home insurance to avoid property threats, thereby driving penetration levels up
Many people confuse home loan with home insurance. Home insurance is totally a different league. Home insurances shrink the level of your property risk. They are the defender to your property. God’s forbid if any awful incident happens to your property apart from any natural catastrophe the insurance company will repay the damage cost entirely. There are leading private companies available in our times which have different types of home insurances as per your accommodation. Presently most of these private companies are selling their financial products through banking channels which is commonly known as bancassurance channel. During these past few years home insurance industries have seen merely 2% growth or so, but surprisingly they are rolling over above 10% of escalation with large amount of business coming from different bancassurance channels mostly. This giant blot hasn’t come from the blues all of a sudden. This is happening due to the mortgage lenders are pressing borrowers to avail home insurance for minimizing their asset risk. For this huge leap as arrived.

Bancassurance has different models for selling such insurance. 1. Strategic Model- Under this model bank sells policies tying up with the insurance companies, but in this case bank only does the marketing portion on behalf of insurance companies, rather than this no other financial activities are performed by the bank. 2. Full Integration Model- Under this model bank sells insurance products under bank’s own brand and will provide monetary solution matching to the customer requirement. 3. Mixed Model- In this particular section insurance company performs the marketing and bank is in charge for generating the leads only. This approach needs limited amount of technical revenue as well.
At a press release Tata AIG General Insurance and Co. declared that they get on an average 6000-7000 selling of their insurance, which means in a year approximately 85000 policies are being expected to be sold from the banking partners. Business from an individual level is also turning out, from a fewer class of people who want to insure their residential/commercial properties, but the major retailing of (near about 95%) insurance is drawing from bancassurance as the banks mandate insurance as a pre-requisite. As an obvious outcome bigger realty projects are popping up and subsequently the selling proportion of home insurance is marching up. Realtors are taking home insurance to safeguard the massive investment of the promoters, and this coverage straight way goes to the building society on completion.  Building society obtains insurance for the entire construction of the structure of the building, the individual insurance of several flats also become elementary once there is that opening gulp. Being a trusted property portal in Kolkata ,Liyans suggests to all our realtor friends and individuals please go by each term and condition and most importantly the interest rates offered by different companies and invest the sum according to your basic requirement.