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Gated Communities With Strict Measures to Prevent Corona virus
Real Estate
20 Mar 2020 | 154 Views
Gated Communities With Strict Measures to Prevent Coronavirus
Hyderabad has become one of the emerging residential hubs with developing infrastructure facilities. Many reputed real estate builders are constructing gated community apartments in Hyderabad to provide a better standard of living to residents. With the coronavirus threat in India, prevention appears to be the best cure available so far. Accordingly, management in gated communities are putting in strict measures to tackle the Covid-19 outbreak and safeguard their residents.  Gated Communities Management Plans  In some of the gated communities, the management has decided to stop the entry of all outside visitors in the community till March 31. They have issued a circular that if anyone visiting the apartment from foreign countries has to reach out to the management committee by sending an email or calling the help desk. They have to quarantine themselves for 14 days. Only maintenance staff such as housemaids, drivers are being allowed, after the thermal screening at the entrance gate. Also, the committee has canceled all Vasantha Navarathri Celebrations for this year.  Safety Measures to Prevent Coronavirus Common areas have been closed Using MyGate App to allow entry of outsiders Issued Emergency Management Plan  Avoid using biometrics for access  Collect the parcels at gate to avoid the entry of delivery boys  With the preventive measures, gated communities in Hyderabad aims to secure the residents from the spread of the Covid-19. By: Shailaja K

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Land Registration in Telangana Halts for Illegal Plots

Telangana government stopped registrations for thousands of open plots across the state in a counter-protest against selling properties without significant approvals. It has instructed the stamps and registration department not to record open plots registration in Telangana for unapproved layouts from Feb 22, 2020. This strict move by the state govt is to deter developers from trading illegal open plots and bring more transparency in TS land registrations. Layout Regularisation Scheme (LRS) Papers Mandatory for Plots Registration As per the 2019 Municipalities Act, The municipal authorities have the right to demand the Registration Department not to register open plots in illegal layouts. They have mandated developers and property owners to request for approved layout plans or the Layout Regularisation Scheme (LRS) report before applying for the registry of open plots along with other documentation.  To uncomplicate things, the Telangana government is conceding the prospective buyers to regularize their illegal plots through Telangana land registration documents online under the LRS scheme. For the past few months, the registration department is also making amendments to re-structure the re-sale properties registration process to prevent any malpractices. HMDA commissioner and principal secretary, municipal administration, Arvind Kumar, said, in future days to come, the Hyderabad Metropolitan Development Authority (HMDA) will dynamically share the details on www.hmda.gov.in of all approved plots to prevent illegal layouts and safeguard the investments of gullible buyers.  In addition to the standard views, the HMDA will check, both temporary and final design approvals, developers’ TS land registration documents whether the land comes under a state property or not, and other such details. With these new improvised rules, the risk for future buyers will, therefore, be eliminated from buying illegal plots in Hyderabad and other places in Telangana from fraudulent builders. By Govi

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Telangana Cabinet Approves HMDA lands for sale in Hyderabad
Telangana Cabinet Approves HMDA Lands for sale in Hyderabad

Hyderabad’s real estate is increasing rapidly. Considering the increasing popularity,  On February 16, 2020, the Telangana cabinet gave clearance to HMDA land for sale in Hyderabad, which will allow the government to earn around Rs 10,000 crore in revenue. Chief Minister Mr. K Chandrashekar Rao chaired the proposed Cabinet meeting in Pragathi Bhavan at 4 p.m. The meeting continued until late in the evening with the presence of all ministers and officials on upcoming infrastructure developments. Cabinet Meeting Key Decisions The cabinet has decided to hold a Revenue Sammelan at Shamshabad on February 28, to explain the people about prominent features of new Revenue Act Telangana to be implemented as part of the administrative reforms and provision of better services to the people. The government is expected to bring in the new Revenue Act during the budget session, which is likely to begin in March's first week and determine the exact dates of the budget 2020 session. Also, discussions are on to increase the market value of the plots in ventures include Mokila, Pratapasingaram, and Medchal District Korremula.  The chief minister also spoke up against the controversial CAA and passed a resolution in the legislature's budget session. The cabinet has decided to fill 2,000 vacant posts in various departments. Also, it addressed many other key issues, including irrigation schemes, modern farming practices, district-based Pattana Pragathi, and development program allocations based on need. Residential HMDA plots are available in different sizes and are affordable. It will cater the budgets of low and middle-class sections. Being a pioneer in real estate data directory creation, we have helped a lot of buyers to find their dream home as per their necessities. Find plots for sale in Hyderabad easily with one click. By: Shailaja K

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Upcoming Four-Lane Bidirectional Flyover at Gachibowli under SRDP Hyderabad
Upcoming Four-Lane Bidirectional Flyover at Gachibowli under SRDP Hyderabad

Gachibowli is a prominent residential location in the West Zone of Hyderabad. Due to its friendly neighborhood, and developed infrastructure many people prefer to own a flat in Gachibowli. As the Gachibowli route is a vital link between the leading IT Corridor like Gachibowli, Hitech City, and Financial District, every day the locality is witnessing heavy traffic. So to ensure smooth vehicular movement, the state government has planned to build a 4-lane bidirectional flyover from Shilpa Layout to Gas Godown at Gachibowli junction as part of the (Strategic Road Development Programme) SRDP Hyderabad. Upcoming Flyover in Hyderabad Previously, the Greater Hyderabad Municipal Corporation (GHMC) has planned to construct three projects, including a second-level six-lane flyover from Kondapur towards Gachibowli Junction Outer Ring Road, a four-lane bidirectional flyover at Shilpa Layout Gas Godown, and a vehicular underpass across the Gas Godown road under the Strategic Road Development Programme (SRDP Hyderabad).  These three projects are planned at the cost of Rs 330 crores. As a part of it, recently, the works of the flyover from Shilpa Layout to Gas Godown at Gachibowli has been started with a price of Rs 115 crore. The foundation pits for the construction have been dug, and the work has picked up the pace to complete the project on time. More specifically, the flyovers would promote better connectivity between the Hitech City to the Financial District, besides reducing traffic congestion at this junction. The GHMC plans to complete the four-lane two-way flyover at Gachibowli in 24 months.  The upcoming flyover in Hyderabad is expected to ease traffic congestion at Shilpa Layout Gas Godown in Gachibowli Junction, besides providing better connectivity to leading IT corridors. Apart from reducing the time for motorists to shuttle over the existing Gachibowli flyover, the projects will save a lot of fuel. As a result, the developing infrastructure would boost the real estate industry in the Gachibowli area.  Would you like to own an apartment in Gachibowli? Visit us to find more than 3139 residential units for sale in the Gachibowli area. Pave the easy way to find the best home for a comfortable stay. By: Shailaja K

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GHMC Launches Transfer of Development Right (TDR Bank) Portal in Hyderabad

Greater Hyderabad Municipal Corporation (GHMC) on Feb 6, 2020, has unveiled an online portal for Transfer of Development Right (TDR) transactions to establish trust among owners and TDR certificate holders. The portal named TDR Bank was inaugurated by KT Rama Rao, Minister of Municipal Administration and Urban Development Ministry (MAUD). For the past two months, GHMC was making endeavors to finalize the TDR bank based on the report sent by the Pune-based agency Softech Engineers Pvt Ltd. The agency took full responsibility for submitting a report and henced worked closely with GHMC, HMDA, and departments that issue online building applications through DPMS Telangana.  GHMC wanted to set up TDR banks so that interested people can buy TDRs online since this portal will serve as a coordinating body between TDR sellers and buyers. The portal supports features such as issue, usage, selling of TDR, and one can also view current data on certificates. As of now, almost 1,000 property owners have earned TDR certificates who have sacrificed their lands for road widening. What is Transfer of Development Right (TDR)? Transfer of Development Right (TDR) is a certificate that is awarded for the landowners that gave up land free of charge for the public use, such as street widening or covered in a recreation area, etc. to name a few. TDS certificate can be leased, transferred, or even can be sold. TDR is certified by the GHMC, HMDA, or particular governing urban local body. The main purpose of TDR bank GHMC is to reduce the time required for the entire process of land acquisition in the local areas for public purposes, which is rather a complicated and time-consuming task.  Who can get a TDR Certificate? The Transfer of Development Right certificate shall be awarded for the transfer of property for the contribution to the local authority or urban development agency. In case of the restoration and growth of lakes, development of natural buffers, road improvement plan implemented and built on peripheral roads in community planning schemes, etc. According to the registration department documents, TDR is granted based on the proportional land value that is equal quantities to both exported and imported areas. In the applicability of TDR, the competent authority shall have the discretion. TDR is not permissible if it is an unauthorized building or illegal registered land.  Advantages of TDR Online Portal For Land Owners As of now, the issuing and use of TDR certificates are usually carried out manually. In order to make the mechanism more citizen-friendly, the GHMC has created the TDR bank. Instead of paying compensation, GHMC has decided to give property owners the TDR benefits who lost their properties for public infrastructural developments. In December 2017, the State government introduced a new TDR scheme with a 400% rise in TDR for sites that have been affected by road extension and 200% for the sites impacted by reservoirs, water bodies, etc. According to the TDR, owners who lost their land during the government acquisition process and didn’t wish for monetary compensation are awarded TDR certificates.  TDR bank app has all TDR transaction details and has an option to transform a manual TDR certificate into digital form. As per the standards, users are also allowed to sell the digital transfer certificate online at much ease. This certificate grants the developer the right to build an additional built area on their property. The document is the permit to construct additional built areas in all parts of the city. The TDR certificate may be sold if the owner does not want an additional floor to be built or want to expand the built-up area.  The revised TDR program was introduced, and the number of TDR approvals increased substantially and was more beneficial for property owners. Meanwhile, in the HMDA authority, the government has expanded the use of TDR certificates to ORR. The new manual holders of the TDR certificates may upgrade and sell their permits in a digital format. Wrapping Up Nowadays, most property owners are supporting Transfer of Development Right certificates rather than compensation as they are receiving four times the benefits. In fact, as of now, the GHMC has issued approximately 550 plus TDR certificates with much more to come. With the new launch of TDR Bank, this process is about to speed up and may attract more landowners in the city. Do you want to stay up-to-date with the latest news of Hyderabad real estate? Browse PropertyAdviser.in to find all trending real estate news and properties for sale in Hyderabad with utmost accurate information at your fingertips. By Govi

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Real Estate Budget 2020 Highlights: Affordable Housing, NBFCs, Reduced Tax

With a lot of expectations ballooning for real estate budget 2020, finally, on February 1st, Finance Minister Nirmala Sitharaman has introduced the much-awaited budget 2020-21 with the new personal income-tax optional scheme,  multi-billion-dollar agriculture, infrastructure, and health plans to revive development in these sectors. She said, "this budget would raise people's income and purchasing power in the form of capability growth and empower the deprived segments while shielding wealth creators." But, what about the Indian real estate sector, which is expecting some significant changes? Let's deep dive on the highlights of what Indian real estate gained from the budget 2020, Helping Hand Extended for Affordable Housing  As per the previous budget 2019, Nirmala Sithraman declared that govt would deduce up to 1.5 Lakh from interest paid on loans for the purchase of affordable houses. Under this scheme, the deduction was granted for the house loans that were sanctioned on or before March 31st, 2020. On February 1st, in the newly released real estate budget 2020, she increased the loan approval period by a further one year, i.e., up to March 31st, 2021, to ensure that more people make use of this additional deduction and to promote affordable housing further. The Union budget 2020 also gave affordable housing developers an extra year's tax holiday. Initially, a tax break was given for the income earned by developers of an affordable housing project approved by March 31st, 2020, to increase the supply of affordable houses in the region. The Finance Minister raised the tax clearance deadline for the use of affordable housing projects also by March 2021. For the houses valued up to Rs 45 Lakhs, the total tax deduction stayed at Rs 3.5 Lakhs the same as the previous year. Revised NBFCs Limits for Debt Recovery During the release of Budget 2020, finance Minister Nirmala Sitharaman proposed reducing the NBFC's threshold for eligibility of debt recovery to address the distressed non-bank finance corporations (NBFCs). The Center has also revised the NBFC debt recovery provisions in compliance with the 2002 SARFAESI Act. Now, the limit has been lowered from Rs 500 Crore to Rs 100 Crore asset size or loan size from the existing Rs 1 Crore to Rs 50 Lakh. The drop in the cap would now improve the security benefits of the lower sized ticket loans for Non-Banking Financial Corporations' debt recovery. This will also enhance the capacity of the NBFC's debt recovery to recover smaller loans and improve the financial health of its lower-value assets. It is said that NBFCs will now be a part of the Trade Receivables Discounting System  (TReDS) and can contribute to economic and financial sustainability. Long-Term Capital Gain Tax Stayed but Exceptions Granted for Real Estate Transactions  To boost investors to re-enter the market, the real estate budget 2020 unveiled the increase of the circle rate from 5% to 10%. Until now, if the consideration value exceeds by more than 5% the guideline or circle rate, the difference is regarded as income for both buyer and seller when calculating capital gains or corporate gains taxes relating to property transactions. But, as per the new release to attract more stakeholders, amendments have been made.  Most market players anticipated the lowering or zeroing of the LTCG tax, but finance Minister Nirmala Sitharaman, in her second budget, has retained the tax on long-term capital gains on equity funds. The long-term capital gain tax was re-introduced in 2018 by back then FM Arun Jaitley. But due to recent slowdown across real estate industries, everyone hoped for the relaxation in LTCG tax laws but were despaired by the budget 2020 outcomes. Booster Packages for Infrastructure & Concession for Cooperative Tax rates To facilitate new infrastructure and create more employment, in the upcoming five years, the govt is expected to spend upto Rs 100 lakh crore on infrastructure. On December 31st, 2019, Nirmala Sithraman granted Rs 103 Crore for National Infrastructure Pipeline to promote more infrastructural development. The new project list includes more than 6500 projects covering the following sectors: accommodation, safe drinking water, access to clean and sustainable electricity, healthcare for the general public, international educational facilities, and new train stations. In our economy, cooperative societies play a vital role in enabling their members to access credit, obtain inputs, and market products. At present, these are charged at a rate of 30% including the surcharge. As a big compromise in the real estate budget 2020, FM has agreed to allow cooperative firms to be taxed at 22% plus a surcharge of 10% and 4% without exemptions so as to bring a balance between cooperatives and businesses.  Revised Personal Income Tax Rates Rises as the Mother of All in Budget 2020 Sitharaman proposed a new and more straightforward personal income tax structure that will significantly lower income tax rates for the individual taxpayers who have not taken on certain deductions and exemptions. These new rules are expected to provide substantial flexibility for taxpayers and simplify the income tax law. As per the new regime, an individual will be taxed as per the revised tax rates, Slab Rates Old Tax Rate Revised Tax Rate INR 2,50,001 to INR 5,00,000 Nil Nil INR 5,00,000 to INR 7,50,000 20% 10% INR 7,50,000 to INR 10,00,000 20% 15% INR 10,00,000 to INR 12,50,000 30% 20% INR 12,50,000 to INR 15,00,000 30% 25% Above 15,00,000 30% 30% Under the new tax structure, a taxpayer can earn substantial tax incentives according to his exemptions and deductions. For taxpayers, the new tax regime is optional. A person currently using deductions and exemptions in compliance with the Income Tax Act may choose to use them under various sections of Chapter- VI-A of the Income Tax Act and continue to pay tax under the old system. In-Brief Clearly, budget 2020 for real estate didn't live up to many expectations, but one can't say it has completely overlooked it. Many expected the allowance of interest on housing loans would rise from Rs 2 lakh, and there would be a turnaround for the stressed real estate developers. Although there were some of the disappointments, considering the uprising constraints, we can say Nirmala Sitharaman's budget 2020 was packed with a decent number of packages. Regardless of any beneficial proposals for real estate in budget 2020, the Hyderabad market has always been the best for investments. Browse PropertyAdviser.in top find all properties for sale in Hyderabad and trending real estate news for a well-informed, smart investment decision making. Real Estate Budget 2020 Highlights: Affordable Housing, NBFCs, Reduced Tax Click To Tweet By Govi

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How to Save TDS on Sale of Property?
How To Save TDS On Sale Of Property?

Do you know if you buy a property that costs more than Rs 50 lakhs, you are supposed to deduct 1 percent TDS? Most buyers are unaware of this simple tax rule. According to the 2013 Finance Bill, TDS on the sale of immovable property worth or greater than Rs 50 lakhs. 194-IA Section of the Income Tax Act, 1961, notes that the purchaser of the property will deduct Tax at 1 percent for all transactions with effect from 1 June 2013 at the time of payment of the selling consideration. What is TDS? TDS stands for tax deducted at source. According to the Income Tax Act, any company or person making a payment is required to deduct tax at source if the amount exceeds certain threshold limits. TDS is a tax that is to be deposited with the government periodically, and it is the responsibility of the deductor. For the seller, the deducted TDS can be claimed in the form of a tax refund after they file their ITR. Let us know the detailed procedures to save TDS on sale of property in the below points. Considering the tendency of taxpayers to adopt tax evasion measures, Income tax provisions provide for deduction of tax at source. Tax rates for such deduction are made under Section 192, Section 194, and 195(non-residents). The person making the payment is entrusted with the responsibility of deducting the tax at specified rates either at the time of credit in the books or payment to the recipient, whichever is earlier and only pay the balance amount to the recipient. This ensures tax is collected in advance, checks tax evasion, and also helps track the income of recipients in the future. It might lead to unnecessary difficulties to certain taxpayers who would not have any taxable income, yet tax gets deducted at source for them, which they end up claiming as a refund. No doubt, these taxpayers are eligible for interest on such a refund and unnecessarily get blocked till refund is received. Moreover, they have to go through the process of filing their return to claim it in a case where it was not otherwise mandatory for them to file it under law. Therefore, with an objective to remove this undue hardship on such taxpayers, income tax law provides for an option to obtain a certificate from the Assessing officer confirming either a lower rate of TDS compared to the rate specified under the law or a NIL rate of TDS, depending on facts and circumstances based on the application made. Section 197 governs these provisions. Section 197 of the Income Tax Act, 1961, allows the taxpayer the facility of NIL or Lower tax rate deduction of TDS (or TDS exemption). In order to apply for this, you need to submit Form 13 to the assessing officer. If the assessee feels that no or lower tax deductions of TDS should be there, then you need to submit Form 13 to Income tax department or Assessing Officer (AO) for exemption of NIL or Lower tax rate deduction of TDS.  Within a frame of 30 days, Assessing Officer has to dispose off the applications. Taxpayers are advised to file complete and relevant details required for processing the application in the first instance itself. If the income tax officer is satisfied then, he will process the issuance of a certificate under section 197. This certified copy of this certificate can be attached to the invoice raised to the client to claim the exemption. This certificate is valid only until the assessing officer does not cancel it. Registration in TRACES is mandatory, and if the taxpayer is not registered in TRACES, then, one needs first to obtain registration in TRACES to get form 13 filing and generation. Steps to Register in TRACES Portal Visit https://contents.tdscpc.gov.in/ website Click on Login and select the option to Register as New User   From the drop-down list, select ‘Taxpayer.’ After the registration form will be displayed Fill the appropriate information and submit, and the registration in TRACES would be completed. Login in TRACES and under Statements or Form tab select ‘Request for Form 13. It would be displayed, and appropriate details need to be filled by the applicant. Once all the information is filled and uploading of relevant certificates, the applicant is required to submit the form 13 by using Digital Signature or EVC. Certificate Generation After FORM 13 successful submission through TRACES by the applicant, on the basis of the information provided in that form, the application shall be forwarded to the relevant assessing officer. After carrying out appropriate verification of details furnished in FORM 13 and on receipt of approval of the competent authority based on that, the Assessing Officer would provide the certificate. Since the certificate would be generated by the system, there would not be any requirement of the signature on it. The applicant and deductor can download the system generated certificate through their TRACES login. Once you have obtained the certificate from the department of income tax, you have to send one copy of the certificate to the purchaser, and he will then send it to his bank. The bank will only disburse the consideration amount to your bank account after receiving such a certificate. All those who are investing in the purchase of immovable property other than rural agricultural land of the value of Rs 50 lakhs or more should carefully understand their obligations for deducting income-tax at the rate of 1% from the payment made to the seller. TDS On Sale Of Property Let us know some of the very important terms which have some connection with this procedure, and it is necessary to understand the legal procedure when you are about to sell the property in Hyderabad or any other states. The first thing kept in mind, is the applicability of section 194IA or 195 for deducting TDS under the income tax act, 1961. There are many cases where the buyer has deducted the wrong TDS by which the seller and buyer both have to face many problems. Documents Needed to Apply Lower or Nil TDS Certificate One has to attach many documents to get a lower or Nil TDS Certificate. The list of documents NRI need to apply for the lower or Nil TDS certificate is as follows: NRI PAN Number (Permanent Account Number) Original title document of the property. No objection certificate (NOC), issued by the previous property owner. Approved plan and occupation certificate copy, which would be issued by the relevant authority and Municipal Corporation of development. If you have bought the property before the financial year 2000-01, then submit a certificate from the valuation administrator or from stamp duty authority, which specifies the value of the property. Other required Documents. Capital gains made from the property sale along with the TDS information present in Form 26AS will have to report in the seller’s income tax return. Would you like to buy a house in Hyderabad? Visit PropertyAdviser.in to, India’s first real estate directory that lists 1000+ residential properties for sale with verified information. The detailed information of all plotting projects, villas, independent houses, and apartments for sale in Hyderabad in one place helps you to choose the best home. Visit us to find your ideal house and lead a happy life. How To Save TDS On Sale Of Property? Click To Tweet By: Shailaja K

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Will There Be a 5 Lakh Deduction on Home Loan Interest Rate in Budget 2020?

The real estate market has undergone significant improvements in recent years and has become more visible and trustworthy as one of the significant contributors to India's GDP. One can't ignore the fact that the real estate sector in India is having its own set of enemies and is struggling hard to get on full swing. But, will Nirmal Sitharaman budget 2020-21 performs any better for the real estate sector? Regardless of the answer being, YES or NO, budget 2020 expectations among real estate stakeholders are piling up. The real estate sector in India is in a need to confront the drastic liquidity crunch following a series of debts by high profile non-banking finance companies (NBFCs). Most builder firms have been facing trouble repaying NBFCs with a slump in the residential property market. In compliance with Section 24 of the Income Tax Act, the real estate industry requires further steps like higher deductions on payment of the interest in loans. Any change to the Rs 2 lakh interest rate will help to revitalize demand in the domestic sector, particularly in the mid-to economic segment of the budget With Indian Finance Minister Nirmal Sitharaman announcing Union budget 2020 on February 1st, the Confederation of Indian Industry (CII) demanded an increase in the home loan interest rate deduction to Rs 5 lakh before the introduction of the Union Budget 2020. It stated that in the Pre-Budget Memorandum, the current limit of Rs 2 lakh does not match the interest burden borne by taxpayers, as prices rise substantially.  At the moment, the highest interest deduction limit charged on the home loan paid is kept at Rs 2,00,000. As per the Confederation of Indian Industry, if there is a rise to the Rs 5 lakh cap, it would boost the real estate market and promote the income tax assessees. This should come without any strings attached like the interest deduction available on home loans for houses priced up to Rs 45 lakh by Rs 1.5 lakh, making the total deductions to Rs 3.5 lakh per annum.  Why There is a Need of Industry Status for Real Estate in Budget 2020? In budget 2020, the Government needs to provide special industry status and must introduce single-window clearance. It is required to rethink on the income tax burden to raise the market and open up more financial options to developers to increase demand for real estate in India. Reinstatement of income tax benefits to a second home is expected to help home buyers and improve the real estate sector too.  In November 2019, the Government announced a special window of Rs. 25,000 credit for stalled property projects, in a move to revive the distressed sector. Finance Minister Nirmala Sitharaman said that the Government is going to contribute an amount of Rs 10.000 crore to the Alternative Investment Fund (AITF), and the State Bank of India and LIC jointly give the remaining amount.  She added that this initiative would support more than 1,600 housing projects in stagnant areas, including 4,58 lakh housing units across the country. For the real estate sector, the union budget 2020-21 must also consider other aspects in the forthcoming budget to encourage the renting of housing to cope with the lack of services. Eliminating or combining stamp duty charges with current GST rates may reduce customers' prices and provide personal tax relief. The Government has taken a series of crucial decisions to revive the real estate sector, which has improved consumer confidence and are expected to bring about positive results to the Indian real estate market to entice developers and companies. Everyone hopes that the budget 2020 akes more developer and investor-friendly initiatives for the progress of the real estate market. Are you interested to know what set of changes does union budget 2020-21 brings to revive the Indian real estate sector? Browse PropertyAdviser.in, to find in-depth information on properties for sale in Hyderabad and subscribe to our newsletters to stay up-to-date with the latest real estate news. Will There Be a 5 Lakh Deduction on Home Loan Interest Rate in Budget 2020? Click To Tweet By Govi

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World Economic Forum 2020 - Telangana Spotlights as the Best Investment Destination
World Economic Forum 2020 - Telangana Spotlights as Investment Destination

Telangana has left behind other developed states of the country in many areas. At the annual meeting of the World Economic Forum held in Davos from 21 to 24 January 2020 in the Swiss Alpine town, the state received a significant mention.  The annual meeting in Davos was attended by Minister KTR, with several top CEOs of IT and industry majors include Alphabet Inc. and Google CEO Sundar Pichai, Coca Cola CEO James Quincey, Salesforce Founder, and Chairman Marc Benioff and YouTube CEO Susan Wojcicki, to speak about the Fourth Industrial Revolution, Technology, Challenges, and Development Plans. This is the second trip of Minister KTR to World Economic Forum Davos and has been concluded successfully.  During the business trip, Minister KTR met with several international leaders, including central ministers from different countries and top executives of global companies. In Davos, Telangana has created a massive spirit despite the presence of major states like Karnataka and Madhya Pradesh by gaining recognization among international business leaders. The goal of this visit was to present Telangana as an investment destination for multinational investors and thus create more jobs for young people. How Telangana Spotlighted As An Investment Destination At The 2020 WEF Meeting? The state has set an exclusive pavilion on the Davos Promenade to showcase Telangana's business opportunities. Telangana has been given a fresh boost in its attempts to draw investment in order to create more jobs at the 50th annual meeting of the World Economic Forum 2020. Minister KTR has attended not only over 50 bilateral meetings with global corporate leaders, but also five interactive meetings with business entrepreneurs and politicians.  Many companies showed a strong interest in State investment. KTR appreciated the support extended by the Union government to the State administration in infrastructure development.  In his numerous meetings with top executives of MNCs, he promoted Telangana as a progressive state with strong and able leadership. He also discussed the available resources and how the state consistently ranked high in the business performance index.  In the last five and a half years, he told them about the rapid development of Hyderabad. The Minister has also emphasized the cosmopolitan nature of the city and its Number One ranking in the Mercer Livability Index. In addition to promises of more investments, the state has bagged a Rs 500 crores contract with the Piramal Group. With the construction of new production blocks, warehouse expansions, and services expansion, the proposed investment is expected to increase production capacity. Minister KTR welcomed Piramal Pharma's decision to expand its operations in the State and assured the company that it will be supported by the government. The Telangana government has concentrated on three factors, such as innovation, infrastructure, and inclusive development, which have continuously surmounted over the past five years and improved business quality. With the developing infrastructure, increased inflow of working professionals, along with the government-led initiatives towards the ease of doing business will help States emerge stronger and boom the Hyderabad real estate sector.  Would you like to purchase a house in Hyderabad? Visit PropertyAdviser.in website, as it lists more than 1000 residential properties for sale in Hyderabad with accurate details. This verified information on all properties allows you to make smart investments. World Economic Forum 2020 - Telangana Spotlights as Investment Destination Click To Tweet By: Shailaja K

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More Investors Engaged in Last-Mile Funding for Stalled Housing Projects
More Investors Engaged in Last-Mile Funding for Stalled Housing Projects

Earlier in September, Government has approved Rs 25,000 crore special window to provide funds for stalled housing projects, to revive the real estate sector, and bring relief to home buyers. Apart from the Centre, SBI, LIC, the sovereign and pension funds have also agreed to invest in the market.  Taking this approach forward, Kotak Investment Advisor, Kotak Mahindra Group's alternative investment firm, has set out to provide financing for the completion of ongoing housing projects in an attempt to boost the real estate sector and to encourage home buyers. In sharp contrast to previous years, more investors are showing a keen interest in last-mile financing of the stalled housing market, which appears similar to the government's commitment of Rs 25,000 for stressed residential projects. The pressures are on developers to produce projects as soon as possible with the earlier promised possession schedule in the line of changing regulative and market environments. Government to Manage the Fund to Kick-Start Stalled Projects The government’s Alternate Investment Fund (AIF) of Rs 12,500 crore, which provides last-mile financing for stuck housing projects, has paid out funding to two housing projects one from Mumbai and one from Bengaluru and is going to be completely deployed the funds in the next two years time. These projects include 1,800 houses, which will accommodate around 9,000 people, in various stages of completion. The government has provided the distressed residential real estate fund for the completion of the construction of affordable and mid-income housing projects. In an exclusive interaction on Monday, Arun Mehta, MD SBI Capital Markets, and President SBICAP Ventures told that the investment would trigger the long-awaited investment cycle in residential real estate and generate private investment interest in housing projects. In order to give a kick-start for the stalled projects across the country, the government entrusted SBICAP Ventures,  SBI Capital Markets, and an alternative asset manager, with the task of managing the fund. The distressed real estate fund has provided financial support for its projects from over 300 real estate developers across the country.  Of these, 200 builders have submitted initial information, and out of these 200 developers, 100 have asked the fund managers for more information. Almost 20% of proposals are actively considered, while nearly 60 projects have not met the necessary criteria for financial support. From that, eight applications have received preliminary approvals, two for final approval, and 40 for active consideration. The next step includes real estate, taxation, accounting, forensics, and legal due diligence.  Last-mile Housing Package to Benefit House Owners The government estimates that there are 4.58 lakhs housing projects in Hyderabad and other states that are facing delayed delivery over 1600 stalled housing projects. The delay has led to an increase in consumer activism, several consumer forum litigations, and even the National Law Court for Companies (NCLT). Kotak Investment Advisors, Kotak Mahindra Group's alternative investment firm has concentrated on distressed properties in the liquidity-hit real estate industry and seeks to acquire these projects across the country.  In the housing sector, the latest-mile funding potential can be high, given there is no provision for the one-time restructuring of existing loans. The new financial provider would like to be subordinated to the existing lender so that interest and principal payments will not be completed until they get paid. Kotak, as one of the largest domestic real estate funding organizations in India, has raised a total fund worth 1.8 billion dollars and has dry powder (cash reserves kept on hand by a company) of about 500 million dollars or Rs 3 500 crores. Following two significant investments in stuck housing projects that have been closed over the past couple of years, and making about 23 percent returns by turning them around, the fund has called for opportunities to be explored in this real estate sector. The Government's participation and last-mile funding are one of the most sought after products preferred by several lenders across the geography. In addition to low performance, land title, and sales risk, the segment stand apart for its faster returns on its capital with higher-than-moderate returns. Investors are also focused on projects since these are already in the last state, and several risks, including the market discovery of price and velocity, and regulatory approvals in addition to design and development, have already been mitigated and thus have an interest rate of 12 to14 percent. In addition to the compulsions of RERA, last-mile financing is also driven by the new trend of homebuyers who show a preference for completed and ready-to-move projects to avoid insecurity. This is the right solution, as more assets would see completion that benefits all stakeholders. This would also lead to reduced claims in addition to these advantages. As a result, last-mile funding for stalled housing projects will help to push the wheels of the real estate sector and relieve the financial stress faced by a large number of homebuyers who have invested their hard-earned money. Do you plan to buy a property and want to stay up to date on the latest Indian real estate news? Visit PropertyAdviser.in, India's first-ever real estate property directory for all the latest property news and residential properties for sale in Hyderabad. Pave the smart way to make a profitable property investment More Investors Engaged in Last-Mile Funding for Stalled Housing Projects Click To Tweet By: Shailaja K

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What Are the Best Places to Buy Plots for Sale in Vizag?

Real estate in India has become one of the most profitable businesses in Visakhapatnam, and the sheer growth of land rates is a testimonial to this fact. Though Vizag real estate traditionally was a place where the land acquisition was a not so difficult affair, it was only during the announcement of Vizag as the executive capital of Andhra Pradesh plots for sale in Vizag has propelled at a profound pace.  Considering the Vizag real estate boom, it is speculated that around 20,000-acre farmland is to convert to layouts. As a result, the number of people interested to make big-time investments in lands for sale in Vizag has considerably grown. However, investing in any real estate market must be done cautiously to get the returns you expect in lesser time. One of the significant aspects that decide the earning capacity of real estate investment is the location of the land. Here, we came with some of the best places to buy plots for sale in Vizag: Bhogapuram Vizag, the executive capital city of Andhra Pradesh is swiftly progressing in real estate towards Vizianagaram and Srikakulam route. Initially, ever since the state government has announced its plans to build the Greenfield Vizag International Airport in Bhogapuram, properties prices have seen a steep rise in and around Bhogapuram. Located at 45km away from the city in the district of Vizianagaram, the area has become the paradise land for Vizag real estate investors. According to the reports, the lands for sale in Bhogapuram have spiked from Rs. 1000-1500 / S.ft. Many gated community residential projects have been launched close to NH 16, and the prices are even jacked up to Rs. 2000 per S.ft. Tagarapuvalasa With a price range of Rs. 2,750 - 5,250 / S.ft, Tagarapuvalasa is a small but rapidly developing suburb in Visakhapatnam. It is located along the Kolkata-Chennai National Highway 16 and is at a considerable distance from the upcoming Bhogapuram airport.  With the presence of good educational institutions, commercial presence in and around Tagarapuvalasa, the area has upgraded a lot in recent years. It has excellent connectivity to Madhurwada, Bhogapuram, Bheemunipatnam. Adding to the value, a six-lane road is being constructed connecting this area for easy connectivity to Vizag. Homebuyers and land investors can find several VUDA approved plots and land, including apartments for investment at affordable rates.  Pendurthi  For Visakhapatnam, Pendurthi is one of the best neighboring places with ample land availability. Lately, the area is enjoying huge attention with the growing Vizag real estate. There are a lot of good transportation facilities from Vizag to Pendurthi and vice versa. Land prices in Pendurthi range from Rs. 2,443 - 4,333 / S.ft.  A lot of commercial and industrial activities are happening around the region. At present, people interested to invest in plots for sale in Vizag can easily buy Vuda approved plots in this area for profitable ROIs. Due to Vuda's construction activities, Pendurthi fulfills almost all specifications of a well-developed locality.  Boyapalem In Visakhapatnam, Boyapalem is a peaceful calm suburb. It is connected through NH 5 and is at a close distance to Visakhapatnam Railway Junction & the airport. The emergence of good educational institutions has also enhanced the area & market value of this community.  Buyers and developers thinking of investing in Vizag real estate can find plots with Rs. 2,470 - 3,449 / S.ft. It is a nearby place to Anakapalle and offers all basic amenities and social infrastructure facilities like colleges, temples, schools, hospitals, etc. can find some VUDA licensed plots and land at affordable prices that have a few apartments for investment. Madhurawada Madhurawada has become one of Visakhapatnam's most desirable land destinations. A big suburban town on the NH5 line of Vizag-Vizianagaram. The reason for its rapid growth is its proximity in and around the area to IT and industrial companies. It is considering a rapidly expanding destination for businesses, sports venues, and colleges. Madhurawada currently supports the construction of large residential projects. Multi-story apartments mainly to meet IT / IIT staff residential demand in the vicinity. Compared to other areas in development with higher rates, property prices in this area vary from Rs 2,211 - 6,000 / S.ft, which are relatively affordable. Kapuluppada With its excellent neighborhoods to the beautiful beach, Kapuluppada, located in Bheemunipatnam district of Visakhapatnam, is a rapidly emerging area with good availability of land. The area is situated around 20+ km from the Vizag railway station and is managed by GVMC.  A few plots and apartments for sale can be found here at an affordable rate of Rs 900 – Rs 1500 / S.ft and can be advantageous for future returns in the long run. This area fulfills all basic infrastructural needs like CC roads, drinking water, sewage facilities for a comfortable living of families. Sabbavaram Real estate prices have increased by leaps and bounds in and around Sabbavaram as the mandal headquarters is assumed to house at least three universities. Located about 32 kms from the RTC Complex, universities including the Tribal University, Damodaram Sanjivayya Law University, Petroleum University, and Indian Maritime University, are likely to be the mainstay of the mandal, which till now was mostly reliant on agriculture.  At present, plots for sale in Sabbavaram are selling at a low Rs 600 per S.ft and goes up to Rs. 9000 per S.ft. The reason why realtors and homebuyers are very much interested in investing in this area is the desire that with educational institutes and a lot of development happens and can give them a decent return on their investments. Final Thoughts The real estate rates concerning the plots for sale in Vizag keeps changing but surely in a positive direction. Irrespective of you being an investor, builder, or buyer who wants maximized profits, you always need to stay updated and act as per the market movement before investing in the ever-changing Visakhapatnam real estate market. Are you thinking of investing in plots for sale in Visakhapatnam, but are puzzled about making the right decision? No issues, with 100% accurate, in-depth information Propertyadviser.in is about to set its footprint in Vizag, Guntur, Tirupati, Vijayawada, and Nellore to assist all real estate stakeholders. Browse us to stay connected with trending real estate news and find the latest properties for sale in Hyderabad at your fingertips to find your perfect home in the youngest metropolitan city. What Are the Best Places to Buy Plots for Sale in Vizag? Click To Tweet By Govi

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11 Dec 2019 | 628 Views
Will Union Budget 2020 Expectations for Real Estate Gets Fulfilled?
The union budget 2019-20 has reported mixed responses from the real estate market in India, lauding measures for affordable housing and infrastructure, as well as the development of rental housing. However, builders and developers are skeptical, that the budget has not addressed the long-term expectations for the industry in terms of status, single window clearance and reforms in the Goods and Services Tax (GST) and have clinched their expectations for union budget 2020 date that is on February 1st, 2020. The Indian real estate sector has its purpose of welcoming the fact that the Finance Minister has announced a range of budget benefits both for builders and home buyers. These measures are expected to boost the housing industry and provide home buyers with plenty of investment opportunities. Although union budget 2019 has its highlights for the real estate, it was not able to address the most pressing concerns of the sector, like an increase in sufficient numbers of consumers and investors returning to the market, excluding affordable housing. Glitches of Budget 2019 & Expectations of Budget 2020 for Real estate Sector Income Tax Slab 2020-21 for First Time Middle-Class Buyers Finance Minister Nirmala Sitharaman, during her first maiden budget, has announced an increase of Rs 3.5 lakh tax deduction cap on the interest paid on home loans approved for the acquisition of the first home purchase up to Rs 45 Lakh in the financial year. It was proposed allowing an additional deduction of up to Rs 1.5 lakh of interest paid on loans leased up to 31 March 2020 in the purchase of an affordable house of up to Rs 45 lakh, noting that interest payable on housing loans was currently permitted as an allowance of Rs 2 lakh. However, some players in the industry have criticized Rs 45-Lakh on the value of affordable taxable houses. Although the sector appreciates the focus on affordable housing and PMAY, the government has at the same time missed the main segment of first-time middle-class buyers who expected a lot from the budget 2019-2020 before they purchased the first house. This has created a considerable ignorance gap for the middle-class housing segment and hence have piped up the expectations for budget 2020 date for real estate. Never-Ending Single-Window Clearance and Industry Status Issue Budget 2019-2020 ignored some significant issues, including real estate industry status and single-window clearance. Developers and buyers had certain expectations that these issues, when taken into consideration, would have made a significant difference in the Housing for All' by 2022. Although the state accorded the industry status for affordable housing in 2017, builders and developers agree that it should apply to the industry as a whole.  Experts say that without the classification of the industry, the use of legal funds by banks and other financial institutions has been problematic for the real estate industry. Single window project clearance is another long-standing request that is considered to be addressed in the budget 2020. Since the developers already need to obtain multiple permits and approvals, with a lack of single-window clearance, it may take 18 to 36 months before any project starts. ITC & REITs Needs an Extra Boost-Up Plans In the previous union budget 2019, the GST council streamlined the criteria on the use of Input Tax Credit (ITC) on under-construction properties. But the complete restoration of ITC was needed by the developers to recover from their ongoing financial pressure. It would have also helped to boost sales since the homebuyers can also share the benefits.  Real Estate Investment Trust (REITs) have already broken several benchmarks in the real estate sector, adding new dimensions. Not only did the cash market expanded, but the flow of institutional funds also increased rapidly. In addition to a few deficiencies, this investment tool needed much more incentives to encourage more investors. The government needs to announce encouraging movements as well as infrastructural developments that can attract further foreign investment in the sector and support the employment sector to strengthen it further. Attention Required for Infrastructural Development & Land Reforms There is no question about the government's priority on the construction of infrastructure. Still, its plan to spend 100 Lakh on infrastructure in the next five years will produce real economic benefits only if a more aggressive execution happens on the ground. Bottlenecks that hamper the growth of infrastructure in the past need to be rectified. The new lower 15 percent tax rate for businesses looking to set up new factories can only be enforced if the land acquisition process is simple and straightforward. Implementing a unique identity number or land UID is expected to increase transparency in the Indian land record system. Thus can boost the mechanism of clearance for real estate projects and can also draw more foreign investments for Indian real estate The Crux of the Matter for Loan Crisis According to Fitch Rating's, with some 10 billion dollars of developer’s loan coming to be paid back in the first half of budget 2020, the fallout could extend to mainstream banks which have borrowed money from the shadow lenders or invested in their bonds. Things have now reached a critical stage, however, because a credit crisis affected shadow banks, both builders and home buyers, as significant borrowers. Although 25 Crore stress funds have been allotted for stalled projects, they are much needed to be utilized to full potential without any delay relieve the situation. The recent decrease in the repo rate, in conjunction with Homebuyers, has further increased new hopes. Homebuyers can now exercise their confidence in raising the cost of higher EMI loans. The Government can announce more tax advantages in accordance with section 80C and can change the income tax sheet in the future budget announcements. This increases the number of prospective homebuyers, as it increases their purchasing trust. Conclusion The real estate market in India is also expected to address the liquidity crisis faced by the government potentially. In September last year, the crisis appeared after a number of its commercial documents, which affected various segments, including the real estate industry, defaulted on significant IL&FS infrastructure loans. Taking all these into considerations, anticipations for union budget 2020 have been increasing among the real estate stakeholders. Want to stay updated with the latest real estate news and find all properties for sale in Hyderabad? Browse PropertyAdviser.in to put an end to your home quest and subscribe to our newsletter to get the daily digest of trending real estate news to your inbox. Expectations of Union Budget 2020-21 for Real estate Sector Click To Tweet By Govi