Quarter on Quarter, Construction of Newly Launched Real Estate in India Falls

The number of new launches of Real estate in India stood at 25,800 units in the first quarter of 2017. At first glance this number may seem healthy, yet it represents a drop of sixteen percent from the number of houses launched during same period last year. Across the top eight real estate markets in India, the number of new launches has declined steadily each quarter since the RERA was announced in March of 1016.

Real Estate in the Short Term

According to some of the best real estate sites and property consultancies, the price of real estate in the short to medium term is not expected to increase. Since March of last year, corresponding to the announcement of the incoming RERA regime, the number of new launches has fallen every quarter since. The demonetization exercise in November of last year also stalled the number of new launches over the past two quarters. However, in the current post RERA regime, the sentiment of buyers is expected to brighten eventually

While the number of new launches in the top 8 real estate markets has fallen by nearly sixteen percent since last year, the total number of new launches across India has fallen by eight percent since April of last year to March end this year as compared to the same period from 2015 to 2016.

Affordable Housing Bests Luxury Housing

It is notable that affordable housing’s share in the total number of new launches increased to 30 percent during April of 2016 to March 2017 from 25 percent during the same period from 2015 to 2016. Interestingly the share of high end and luxury houses dropped from thirteen percent of new launches in 2015 to 2016 to eleven percent of new launches from 2016 to March end 2017. According to some top real estate analysts, the sales of luxury homes has been hit particularly hard over the past few years due to a mismatch between the supply of and demand for such homes.

Table of content GST: Owners of Property in India May Pay Higher Tax on Maintenance Charges Demand for Semi Luxury Real Estate in India May Stall Demand for Property in India is not just driven by IT Workers

Experts Corner

According to some top real estate experts, to comply with RERA norms, builders will make some intrinsic changes to their operations, business structure, and marketing strategies. Hence new launches are expected to remain restricted over the next three to four quarters. It is expected that consumers will be less enthusiastic about buying a new property in India during first half of this year. Furthermore, as IT companies continue to downsize, it will dampen the sentiment among numerous end users as well.

Conclusion

Towards the end of 2017, real estate sales are expected to pick up due to an improvement in buyer’s sentiment brought about by the introduction of RERA. According to real estate experts, market sentiment will continue to remain weak for the time being as markets adjust not only to the norms of RERA but also to the soon to be introduced GST regime.

In the long run however, the real estate market is likely to remain upbeat and strong as interest by homebuyers and investors to invest in real estate improves with more positive market sentiment.  

Real Estate in Gurgaon’s Southern Regions Challenges Older Gurgaon Localities

Realestate in Gurgaon is abuzz with action and many are saying today that South Gurgaon is what all of Gurgaon should have been from the beginning. South Gurgaon is the region of Gurgaon in or near Sohna Road.

What’s the Difference?

South Gurgaon is coming up rapidly and from its onset has been better planned than were the older regions of Gurgaon near Golf Course Road. The lack of formal planning led to much haphazard planning in the older regions of Gurgaon. Many infrastructure projects have been implemented in the regions of MG Road and Golf Course Road that have drastically modernised these regions. The drive down the newly built tunnels on Golf Course Road is no different than a drive down any well-built road in Paris or London. However such developed took its time and is only visible after twenty years of poor planning in the localities mentioned.

What took over two decades to come to pass in the older regions of Gurgaon will happen in a fraction of the time in Sohna Road. City planners, civic authorities, and builders in Gurgaon have learnt a lot from the mistakes made in the early years of development in the millennium city. What took two decades to happen in the older parts of Gurgaon is expected to happen in two years in South Gurgaon.

Challengers to the Throne

Golf Course Extension Road is already a strong challenge to Golf Course Road, not just because the houses and commercial properties on Golf Course Extension Road have been built by some of the best in the world. Aesthetically too, Golf Course Extension Road, at a ninety-degree angle to Golf Course Road, covers a larger area than does Golf Course Road and provides the promise of being the backdrop to a larger number of commercial properties and flats than the Golf Course Road.  

Just as Golf Course Extension Road holds the promise of being a challenger to the Golf Course Road, Sohna Road is equally a challenge to the Golf Course Road. As a matter of fact, cities eager to develop their urban landscape are learning and copying a great deal more from South Gurgaon than they ever did from the more mature regions of Gurgaon.

Conclusion

Cities across India are learning from the modern and planned organic development occurring rapidly in the regions near Sohna Road. While Chandigarh is also a planned city, it is none the less not as modern a city as Gurgaon due to its relatively temperate rate of development. Many of the upcoming projects in Gurgaon on Sohna Road are worthy equals to the best developments on and along Golf Course Road.  

Gurgoan Civic authorities provide motivation to the RWAs to increase property tax gathering

In a motive to inspire residents to pay property tax, the MCG has introduced an incentive program to offer Rs 5 lakh to the one who resides in resident welfare association and will guarantee that the tax payment is made by the majority of the citizens of their region.

The commissioner had pronounced an order on 2^nd May, where 80% of the unpaid taxes are cleared till 31^st May. He also said that the money could be spent on beautification of parks, developing green zones and improvement of community centres. This will benefit the property in Gurgaon.

The strict method taken up by the Municipal Corporation of Gurgaon (MCG) aims to make citizens pay their property taxes appears to have labored. Citizens in this region are displaying keen inclination towards clearing the property tax dues with a hope that MCG could consider their regions for upgrading.

From its time of formation in 2008, the MCG is facing difficulty in steer residents to clear property tax, with a few residents’ authorities and have even approached to the court to take action against what they say 'dual taxation'. Gurgaon builders citizens Council a co-organization of resident welfare associations had sought  help from the Punjab and Haryana high court in the year 2009 and made an allegation that the citizens were made to pay property tax two times –first by the private developer and secondly to MCG.

However, the high court turned over the petition. Further, the GCC moved to the Supreme Court in the year 2012, which also turned down the plea, pronouncing because it is State’s concern and only the HC could make any decision on the matter. The issue has been pending since then with HC from 2013. MCG commissioner V Umashankar on 16^th May conveyed the RWAs that their areas might be considered by the MCG over development if they cleared the property tax dues. The GCC has thought to installation tax collection camps in DLF areas from 25th May to 27^th May, where MCG will interact with the property holders and answer their queries on the matter.

The recent rebate program offered by the authorities is appealing, because of which several residents are clearing their tax dues. However, GCC plans to continue to fight the case in the High court make sure that the tax amount gathered from private colony citizens over time through the MCG. This move by authorities will surely be good for residential projects in Gurgaon.

Table of content  GNIDA Working Hard to Ensure Speedy Handover of Property in Noida Livability in Residential Projects in Noida Being Impacted by Builders RO Plants Noida Authorities may seek for Rs.900 crores from the buyers

Livability in Residential Projects in Noida Being Impacted by Builders RO Plants

Occupants living in residential projects in Noida have written to the Noida Authority CEO stating that an end be put to unauthorised RO plants functioning in the residential sectors of Noida. Occupants of houses in Noida have stated that RO plants lower the level of ground water. Member of the Resident Welfare Association also wrote to the Noida CEO stating that builders waste a great deal of groundwater.  

The Issue of Water

Unauthorised RO plants were demanded to be shut down by the Federation of Noida Residents Welfare Associations (FNRWA) because of such plants lead to a great deal of wastage of water and lower the ground water table. Builders use the RO plants to extract ground water which is being rapidly depleted in Noida.  

The Residents Welfare Association Federation has also urged the authorities to take measures to harvest rainwater in Noida. RWA Federation members urged the authority to immediately draft plans and policies which would result in rainwater harvesting in industries, institutions, office building, and in parks across the city. Federation members believe that if water is harvested the likelihood of a shortage of drinking water in Noida in the future will be greatly diminished. Currently, many sectors in Noida face a shortage of drinking water.

In the Words of the Residents

The FNRWA president has stated that the Federation has received numerous complaints regarding unauthorised RO plants. According to these complaints, there are numerous unauthorised RO water plants in sectors and neighbouring villages which results in a wastage of groundwater. The ground water is extracted to bottle RO water, and untreated water, as per the accounts of the residents, is disposed of in the drains by builders.

According to the FNRWA President, because builders have numerous projects in Noida, they are an additional and a significant reason why water is wasted in the city. According to Noida residents, real estate developers in Noida are an additional reason why water is wasted in the city. Because builders extract ground water with virtually no hindrances, so as to build buildings, and supply workers on their many multi-storied housing complexes, they are a significant burden on the city’s water resources.  

The Depth from Which Water is used

Residents have stated that the builder’s operational RO plants are the prime reason why water is being constantly depleted in Noida. Today there is a scarcity of water up to two hundred feet below ground level whereas the water table earlier was aplenty at a depth of sixty feet. Households that have plans to buy property in Noida should be aware that the city has a problem of water scarcity which could become acute in the near future.