Real Estate Development Projects in Bangalore: Hennur Road

The development in India has been showcased to the outside world by the means of a few bustling cities in the country. All around the world, Indians are making their home country proud by being a part of huge, mind-boggling, world-changing projects.  Due to this, there has been a lot of development in the cities of India, especially the metropolitan ones. The development in the metropolitan city of Bangalore, currently known as Bengaluru has been appreciable in the past decade. 

As the demand for housing and property increased, the rate for the property also increased. With the rapid boom in the IT sector, there was a lot of property available in the city of Bangalore, and the employees of the prominent IT companies were more than interested to buy them at any rate demanded.

Rates for buying property in Bangalore immediately went soaring through the roof, due to high demand, and the builders constructing the various towers and other residential spaces made huge money by selling the flats at prices far more than the original price, or what it was actually worth. The value of the land has appreciated manifold in the past few years, and people are lining up to buy property before the price goes over the budget.

How Does Hennur Road Come in The Real Estate Picture?

Hennur road is one of the most well-known areas in the city of Bangalore, due to the prevalence of the most important social and economic hubs around it. There is a daily influx of day population in and out of the area. There is high demand of residential space in the neighbourhood.

There are many reasons for this tremendous increase in the value of real estate in this area. One of the main reasons for this is the connectivity it provides to the rest of the city. Also, it is an area which is very close to some of the major IT parks in the city. It’s a well known fact the Property in Bangalore, is very costly and these include the rates of apartments in Bangalore. Another major reason as to why this area is on the top of the “most sought after places in Bangalore to live” is the fact that it is situated right in the heart of the city, which makes it extremely close to all the important and well known commercial, economic and entertainment centers of the city.

Property in Bangalore has always been costlier than the property in other states. This area, being much in demand, has a lot of potential in the future. The upcoming projects are definitely going to serve as a big boost to the real estate of Bangalore. Upcoming ventures also include a lot of commercial complexes along with residential spaces in Bangalore, especially in Hennur Road.

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Diluted RERA Makes Haryana Buyers Anxious

The realty sector is a key and one of the fastest growing sectors in India. This real estate sector is growing at a rapid pace, and within next few decades, it is expected to witness a solid hike of about 30 percent or maybe more. This real estate sector is diluted from head to toe, and undoubtedly it is one of the most corrupt sectors in India. Black money transactions, fraud sales, inappropriate promises and not abiding by the guidelines, false documentation and paper works are the major drawbacks of this Indian real estate market.

Haryana is one of the fastest developing states of India with a growing real estate market and rich agricultural background. The state government of Haryana has come up with a slight modification in Regulation and Development Act by implementing Rera. This move of the government is not positively accepted by its citizen and the government is also facing a lot of criticism for the same.

The buyers are unhappy with this dilution in the Regulation and Development Act and they are blaming the government for favoring the developers. Over 300 objections were submitted to the government to abolish this new rule. And when they didn’t get any acceptable answer from the concerned authorities then the homebuyers of 20 unfinished projects gathered in a park and performed a “havan” seeking help from the divine power.

This newly introduced draft excludes projects which have received completion or occupation certificates, and this has created the biggest doubts in the mind of buyers.

Mridul Babar who has booked a flat in Adani Oysters Grande was quoted as saying- “We have submitted our objections to the draft rule. Now we’re reaching out to the Almighty for help.” Another investor who invested in Dwarka expressway was quoted as saying “Several Projects in Gurgaon are delayed and in many cases work on the site has stopped.” He has demanded a stronger RERA to clear this ongoing mess.

Homebuyers are not at all satisfied with this move of the government, and they are demanding the government to trace the track records of developers and set some proper guidelines and force them to work under those given guidelines. They urged for amendment in rules and asked the concerned authorities to keep an eye on the developers.

Under the current rule of the state, the developers are needed to provide detailed information on their last 5 years launch projects and the government has to monitor them and then only the certification has to be issued. This rule is not practiced up to the mark, and there is corruption in allocating tenders, and the real estate developers are benefitting by this. The state development and Regulation Act needs some serious reforms, and this minor alteration is only helping developers.

It will be important to see what steps government takes in order to ensure security in the mind of buyers who are at the moment a bit anxious with this diluted Rera.

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Frazer Town- A Prime Address in Central Bangalore

Central Bangalore has been an elite neighborhood since a long time now. Frazer Town, one of the most popular areas with the high-end property buyers in Bangalore is witnessing an increased demand for luxurious and high budgeted flats and apartments. Several leading real estate consultants and property dealers in the city are reporting increased demand to consider Frazer Town for residential space.

According to an Inside Report by 99acres, the Frazer Town area witnessed a record growth of over 5% in capital and rental values, during the period from October to December 2016. According to real estate dealers in the city the increase has resulted in the launch of several types of gated and independent housing units in the region, especially in the last 6 years due to which there is huge demand to buy property in Frazer Town.

Central Bangalore has a wide range of expensively priced opulent housing units. The area offers a large choice for the elite buyer in terms of the opulent lifestyle often sought by the wealthy when moving to Bangalore. The localities of Rajaji Nagar, Indiranagar and Jayanagar are also popular in Central Bangalore zone however the real estate developers and builders have largely seen a demand from prospective new buyers to buy flat in Bangalore’s central area, in Frazer Town region.

The current land rates in the Frazer Town area hover between INR 4,000 to a whopping INR 16,000 per sq ft, making it one of the premium and choicest luxury localities in the city. Started in 1906 as part of the expansion plan for the Bangalore Civil and Military Station, Frazer Town (officially called ‘Pulakeshinagar’) is currently one of the top high-end real estate markets in Bangalore.

Factors That Make Frazer Town a Top Choice For Luxury Flat Buyers in Bangalore

Ideal Location

Frazer Town is in close proximity to other popular localities, including MG Road, Commercial Street and Infantry Road. Apart from this, the presence of the Outer Ring Road (ORR) provides efficient road connectivity with the rest of the city. The other major roads, including Madhavraya Mudaliar Road (MM Road), Promenade Road, Spencer Road, Haines Road, Wheeler Road, Netaji Road and Mosque Road provide excellent connectivity.

Efficient Price

Even though Frazer Town is considered to be one of the most posh and luxurious neighborhoods, as compared to other well-established and old areas in the city, it remains a significantly affordable option for luxury home seekers. The average land rate of Frazer Town is around INR 8,400 per sq ft, as compared to neighboring localities, such as Richmond Town which has an average land rate of around INR 10,000 per sq ft. The Frazer Town area also has extensive offers for people looking to rent luxury apartments in central Bangalore.

Ideally, tenants can rent a 2BHK flat in Frazer Town for a price of around INR 22 per sq ft, which averages to around INR 25,000 to INR 28,000 per month.

These and other such factors have helped to boost the popularity and demand for residential property in Bangalore in recent years. 

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Does The Kolkata Real Estate Sector Have Growth Prospects in 2017- 2018?

With the multitude of flats coming up in Kolkata and the implementation of GST and RERA is sure to bring more buyers, Kolkata real estate is sure to see a boom in the 2017- 2018 period. The developments in the city have been massive in recent times and although it was expected that the demonetization would eventually slow down real estate, nothing of that sort had actually happened. There has been a 30% increase in the last three years and it had been a mix of new projects in Kolkata in entirely new localities as well as redevelopments of familial properties. The people in Kolkata have always been emotional and many families held on to their ancestral properties, in spite of finding it hard to maintain the huge buildings. 

Now the buildings built till the 1960s are finally being pulled down with these properties being handed over to the promoters who are making apartment buildings in its place and the home owners who have sold off their building are given a flat or two depending upon the deal. Some of the major areas of the city to see this kind of redevelopment are Ballygunge, Bhowanipore, Gariahat, Alipore and Park Street, along with certain pockets of North Kolkata.

North Kolkata did not have many high rise properties and frankly speaking, the core areas of the city have long been saturated, which resulted in the growth of areas like New Town, Rajarhat and Baranagar. New Town and Rajarhat cam into focus after the IT boom in Sector V and most of the families living here are that of the young professionals who are working in IT. However, the prime areas of the city like Ballygunge, New Alipore, Lake Gardens or Jodhpur Park or Shyambazar has always had their own appeal and owning a small place here, even though it might be small due to budget constraints, can have greater value in the long run than a regular flat in the fringes. 

Moreover, the older houses in Kolkata are huge and they are sold with 5 kathas and 15 kathas parcel and a single katha costs over Rs 1 crore anywhere in the city, whereas land in Park Street, Lansdowne, or Jadavpur are sold at 2.5 crores per katha. Even a small 800 sq feet flat in these locations would cost around Rs 75 lakhs, plus taxes.

North Kolkata has now seen the demolition spree with older properties being pulled down at such a rate now that it had also motivated a group of petitioners to start a campaign to protect the architectural heritage of the city. In the latter of 2016, the region has seen a 15% increase as more land was available here than ever before. The young population moving out of the city is also a major reason behind it, as basically no one is left behind to care for these huge properties anymore and the owners prefer liquidating the property instead.

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Bollywood Stars Who Own Properties in Dubai

People may have some dreams of having properties in Dubai. The Bollywood celebrities are topping the list. They have the desires for having properties in Dubai and fulfil the dreams in buying the properties in Dubai. The place holds strong base for living and uplifts the status of Bollywood celebrities. They also spend quality time during holidays staying in their own homes in Dubai by sitting in independent beach or private pool. Shah Rukh Khan, the famous Bollywood celebrity was gifted a villa in Palm Jumeirah, Dubai by one real estate developer in Dubai. The villa is in a posh area with one independent beach and one private pool. The total area covers of 8500 sq. ft. and contains six bedrooms. King Khan is always eager to spend quality time on holidays with friends or colleague or during shooting in Dubai villa.

Shilpa Shetty, the famous Bollywood celebrity was gifted one apartment in Dubai by her husband Raj Kundra. But, in due course of time, she sold the property as it was too small to serve her purpose. She was looking for much bigger property. The Bollywood couple and celebrities Abhishek and Aishwarya Rai Bachchan own resort type villa in Jumeirah Golf estate. Real estate developer in Dubai builds spacious, luxurious style villas or apartments with independent water body. The Bollywood celebrities are attracted towards the features of the villas or resorts and buy the villas to enjoy their holidays with new thrill and enjoyment.

Investment in Resorts With Water Body in Dubai

The popular singer Madonna has purchased one mansion, which is integral part of an estate and is lying on the part of the islands. So, as the water bodies are associated with the villas or the mansion, the craziness of buying the properties in Dubai is enhanced by the Bollywood celebrities. The builders of India are showing interests in investing on the lands in Dubai. The real estate in Dubai is three times cheaper than the lands in India. The real estate regulatory act is also strong in Dubai. Socio economic structure is also better than India. The crime rate is lower in Dubai.

Cheaper Rates of Real Estate Move The Developers to Invest

The comparison data of real estate in India with Dubai proves that Dubai is much more comfortable to invest and promote. The builders of India also make the tie ups with Dubai for development of real estate as the profit making zone is higher with comfortable situations. Implementation of RERA in India has built up the uncertainties in the real estate sector in India. The impact of RERA is distributed within buyers and developers. Demonetization also has decreased the number of buyers in India.

In this situation, the renowned developers may stretch their wings in Dubai for extension of their business. The excellence in technology, skill and finance will make the business stronger in Dubai. There has already been steady movement of buying of properties in Dubai by Bollywood celebrities. So, the developers are interested in investing in real estate in Dubai.

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Builders Forecast Affordable Housing Prices Falling by 3-4%

The recent implementation of GST (Goods and Service Tax) is looking to cut down the cost of affordable housing although it depends on the developers also. If they don't enhance accommodation prices to get enough money to repay investment return during this period, the prices can be controlled with the help of practice of GST. After implementation of goods and service tax (GST), now the developers have to cut on the cash component and source their inputs from the registered retailers to apply any tax rebates. There might be some price rupture while purchasing raw material from the registered retailers. 

The buyer of under construction property will have to pay twelve percent GST (good and service tax) besides to stamp duty and any other charges. Corresponding to Ashok Mohanani, NARECO (National Real Estate Development), and Vice President-affordable housing part can see the price drop of about three to four percent. Ashok Mohanani also added that- affordable housing in Delhi, Mumbai or any other cities in India would have benefits of purchasing input tax credit. Earlier, the developers used to pay excise for fittings of steel and cement that would involve in accommodation prices. 

They did not get any source of input credit, but after goods and services tax they will be able to purchase credit that will permit them to cut down accommodation prices, benefiting the buyers as well. Hence as per the experts, the new tax will be helpful to the overall industry and also to the buyers in the affordable housing segment. 

GST (Goods and Services Tax) will rein down many indirect taxes such as VST, excise duty, service tax, etc., that were indirectly paid by buyers to developers. Although, this influence may not be seen in the premium or lavish housing segment and they will less or more remain the same.  A sale of upcoming real estate property in Delhi, Mumbai or any other cities will be classified as the supply of the services, and it will be subjected to goods and service tax payments while the sale of complemented land and real estate properties are excused. Also, the VAT charges and service tax paid on the sale of an under-construction property will come under goods and service tax. 

As per the ICRA report, goods and service tax rate will be twelve percent for buildings constructed for the sale that includes the land value as well as the sales value. If the accommodation and building value happen to be a separate agreement, an expected goods and services rate will be eighteen percent on the construction agreement value. An ITS (Input Tax Credit) for various construction good and services used in the building will be fully available although if the Input Tax Credit exceeds output goods and service tax liability, it will not refund. The influence of goods and service tax differ from state to state due to various tax structures followed in several states. Similarly, savings in project cost may also differ accordingly, depending on the project cost.  

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Can A Non-Resident Indian (NRI) Buy or Own Property in India?

Every year, thousands of Indians migrate to other countries. The shift happens mainly due to a good job or a business opportunity. They may even get a permanent residency (PR) in the country they have moved to. Though NRIs live outside the country, they are still citizens of India. 

Here are types of properties you can own as NRI:

1. NRIs can only invest in certain properties:

NRIs are generally allowed to purchase immovable properties in India. However, you can only buy a residential property or commercial property in the country. You cannot buy a farmhouse, agricultural land or plantation property in India. You may have to seek special permission from the RBI if you need to make those purchases. Person Of Indian Origin (PIO) are also allowed to buy property in India and have the same rights as NRIs. There is no restriction to the number of residential or commercial property you can buy as an NRI.

2. NRIs can avail home loans to buy property in India:

Lenders can provide loans to NRIs planning to buy residential property in Delhi, Mumbai or any other city in the country. The RBI has permitted banks and other financial institutions to sanction home loans to NRIs. The loan will be disbursed in Indian currency and has to be repaid using the same currency. The loan, however, will be disbursed to the seller or the property developer's account.

3. NRIs can use PoA to complete property purchases:

If you cannot personally come and complete a property purchase due to any constraints, you can use your PoA (Power of Attorney) to finish the buying process. You can either give your PoA to a friend or a relative and they can help you buy the property in India. The PoA can be general or specific as to what rights your representative holds.

You may also like: Why is South Mumbai usually preferred by expats

4. NRIs can purchase property jointly with another NRI:

NRIs are allowed to purchase any property on their own, or jointly with another NRI. However, you cannot purchase a property jointly with a resident Indian notwithstanding the contribution of the latter towards the purchase.  

5. NRIs can continue to own previously acquired property:

You are allowed to own any agricultural land, farm house or plantation property that you owned before you became an NRI. You can also let out the property, and taxes must be paid on the rent earned. However, you are not allowed to own any of the above after you become an NRI. 

6. NRIs can gift or sell an immovable property:

You are allowed to gift or sell an immovable property to any NRI or person residing in India. As an NRI, you can also gift or transfer any property excluding agricultural property, plantation property or farmhouses to a fellow NRI.

NRIs and PIOs both have certain rights when it comes to buying properties in India. However, they have to get special approval from the RBI if they want to buy an agricultural property. This will be considered by the RBI on a case to case basis. As per the income tax laws, an NRI can own as many residential or commercial properties as well.

Additional Reads
 
Bollywood Stars who own Properties in Dubai
Eco Friendly Infrastructure Development 
Most Expensive Homes of Indian Billionaires
Benefits of buying home at your wife's name
 

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Bellary Road Makes A Desirable Property in Bangalore

Introduction

Located in the North of Bangalore, Bellary Road is a relatively calm area in the bustling city of Bangalore. The area has ample amenities one could require with all the conveniences. The area is very well organized and divided into neat roads allowing easy navigation. The area is relatively developed and is the hub of quite a few 3 BHK flats in Bangalore. If one is looking for property in Bangalore which will give you all amenities one could desire, as well as various commercial plazas, then Bellary Road is the place to be in.

Overview

Various housing options are available in the area, ranging from 1 BHK to 4 BHK. One can expect houses at affordable rates as the area isn’t classified as posh or up-market. For the residents or aspiring residents of the area this is good news because, given the number of colleges, schools and other various workplaces located in the area, housing is cheaper and easier. Bellary Road is the epicenter of new residential projects in Bangalore due to the recent economic boom. People can find elegant and economical homes for rent as well as for purchase according to one’s choice.

Advantages

Given its proximity to different colleges, the youth of Bangalore can rent a single room or even a bigger flat on sharing basis. Various new residential projects in Bangalore offer housing units to students to multiply their profits. The area is potentially the upcoming hub of Bangalore and a developing marvel. Looking for property in Bangalore can be a tedious process due to the vastness of the city but people with jobs in the various hospitals and clinics in Bellary Road or the different commercial plazas can easily find an affordable abode without too much of a hassle. 

It is situated conveniently near the highway. The presence of a mall and a number of colleges has given rise to different hangout spots and restaurants in the area. This again leads to making the area conducive for the real estate business as well as to the investors.

One can argue that the proximity of the number of schools in the area can lead to a lot of traffic and hustle and bustle, but Bellary Road is arguably one of the calmest locations in Bangalore. The well defined and organized roads perfectly handle and divide the traffic to avoid traffic jams and invariably, sound pollution. The exponential growth of the market has resulted in businesses looking to expand in different areas and Bellary Road aptly fits into the list of preferred areas.

Conclusion

The area already has a lot to offer, with a profound magnificence of its own, adding to its elegant charm. Crime rates are exuberantly low here thus providing complete security to families and other residents. The schools in the area are also critically acclaimed, forcing more and more builders to invest in the area for their profits.

In conclusion, Bellary Road is an idealistic location for everyone looking for a relatively calm area with a safe neighborhood. Investing in a home in this area would be the best step anyone could take because, in the years to come, this area will yield major profits for everyone.

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Developers in India Hope for Property Boost From Goods and Services Tax

Albert Einstein said that the hardest thing to understand in the world is income tax. At present, there are several taxes levied at the state and central level. Such a system has led to rise in the final prices of the goods and services.

The government is all set to roll out the Goods and Service Tax (GST) Act from July 1, 2017. GST is a single tax rate that will replace all the existing indirect taxes by the State and the Central government. A single tax rate is expected to bring uniformity in the tax system.

The realty sector is particularly excited about this; especially, after the slowdown in the sector post demonetisation. The GST on under construction property will be 12%.

Here’s all you need to know about GST and the real estate sector:

The Existing Tax Rates

At present, service tax and Value Added Tax (VAT) is levied on under construction property. For properties costing more than Rs.1 crore, you pay a service tax of 4.5% on the agreement value. For those costing less than Rs.1 crore, the tax rate is 3.75%. Under construction properties also attract VAT. The VAT rate varies across states. Maharashtra levies 1% VAT on the agreement value. The VAT rate in Karnataka is 5.5%. States like Tamil Nadu and West Bengal do not levy VAT. In addition to these taxes, you pay stamp duty as well as the registration charges while buying a property.

• Tax Rate Under GST

The 12% GST will do away with the existing service tax and VAT. However, you will still have to pay the stamp duty and registration charges. On the surface, the new tax rate may be perceived as a higher tax burden for the realty sector. However, the tax incidence in actuality is quite lower. This is because of the Input Tax Credit (ITC) that the traders and manufacturers claim.

• Input Tax Credit (ITC)

Traders and manufacturers pay tax on the raw material that they use for their product or service. They again pay tax on the final output that they offer. ITC allows them to claim a deduction from the tax on the output. The tax paid on the input can be reduced from the tax paid on the output. Currently, real estate builders get no ITC on the tax paid on fittings, steel, and cement. Under GST, this will change. Post, GST, builders will get the benefit of ITC.

Developers Hopes on GST

Real estate was one of the worst hit sectors due to the demonetisation policy. GST is expected to bring some respite to the real estate sector. Since GST allows ITC, the property prices are likely to come down. Several developers are of the opinion that GST will boost investments in sector.

With reduced prices, the Indian real estate market will become more attractive for Non-Resident Indians (NRIs). GST is likely to invite more foreign investments into the realty sector. This is further supported by the findings of property consultant Knight Frank and industry bodies such as the Federation of Indian Chambers of Commerce and Industry (FICCI) and National Real Estate Development Council (NAREDCO). According to 64% of the industry leaders, residential sales are likely to improve in the next 6 months after GST implementation.

Materials such as steel and cement are important inputs for the construction business. These inputs are most likely to be cheaper due to the reduced tax rates under GST. For instance, coal is used in the making of steel. The current tax incidence on coal is 11.69%. Under GST, coal will be taxed at 5%. Thus, GST is likely to bring down the cost of raw materials. This could contribute to the reduction in the final property prices.

Property developers in India are also hopeful of a transparent realty sector. Many believe that a single tax rate is likely to bring more clarity to the sector.    

To sum it up

GST is said to be India’s biggest tax reform. Developers across the country are hopeful that this reform will boost investments into the realty sector.    

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Buying a Home in Dilshad Garden Would Be A Dream Come True

For a regular middle class family, buying a home in a safe and secure neighborhood is of paramount importance and Dilshad Garden is one such best place. A reputed colony situated in the north-eastern side of Delhi, the colony was first developed by the Delhi Development Authority and contrary to popular belief; it is not the same as the Dilshad Colony, which is located nearby. The entire colony is extremely well planned and divided into various blocks denoted from A through R. One of the major landmarks in the vicinity is the Deer Park which is famous for its lush greenery and very popular among the residents for walks. Apartments for sale in Delhi hence never remains unsold.

 

Dilshad Garden is serviced by quite a few DTC buses and private buses from various sections but the Anand Vihar Bus Terminus is situated about 4 kms away and the railway station is about 3 kms away from Shahdara. Flats in Dilshad Garden are hence owned by people who want to stay well connected to the rest of the city and are regular commuters and the region itself has an eclectic mix of population from various income groups. Hindus, Jains, Sikhs, Christians and Muslims live here in complete harmony and the colony is also well known for celebrating festivals of all religious communities. The colony is situated in close proximity to areas in Delhi like Vivek Vihar, Jhilmil, Seema Puri and Nand Nagri and that makes owning a home here a great advantage.

The bus depots of the region are located in the various Pockets and the area is also serviced by the Dilshad Garden Metro Station, situated on the Red Line. People living here have access to almost every kind of amenities in the shape of shopping malls like Stuff Garden and Chetak Complex, Reliance Fresh and Bansal Stores. Most importantly, the area has a number of hospitals which give the people of the colony access to the best medical facilities like the Delhi State Cancer Institute, Rajiv Gandhi Super Specialty Hospital and GTB Hospital among others. Also the best of educations, in any of the following schools, like MCD Primary School, Greenfields Public School, Flora Dale Senior Secondary School and Lovely Public School, are available to the children of the colony.

Those who buy flats in Dilshad Garden know that a place here would be extremely helpful for enhancing their lifestyle. Flats for sale in Dilshad Gardens are available at various price ranges with a 3 BHK flat of about 1150 sq feet being sold for about Rs. 90 lakhs. Flats are usually sold at a price of Rs 8000 per sq feet and even a modest 2 BHK flat would cost around Rs 65 lakhs. Since the colony was built sometime back, the flats available for sale now are mostly secondary and the colony being well maintained, the flats are in very good condition and will remain so if the residents continue to maintain the individual premises.

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