Parliament Lockjam: Will Real Estate Regulatory Bill Ever See the Light?

K Ramanathan

The tall climes of steady upward growth are notwithstanding, the real estate sector in India, which is the second largest employment generator after agriculture, has been in doldrums for the last few years owing to economic downturn with developers looking for a ‘miracle’ which can turn the tide for the sector in 2016.

There have been a few positive developments in the recent past such as opening up of Foreign Direct Investment (FDI), introduction of REITs and recently, the cabinet passing the much-awaited Real Estate Regulatory Bill which have created positive vibes among the real estate community.

Though the success of the first two initiatives can be gauged on the basis of investment scenario, which again depends on the economic growth, the enactment of real estate regulatory Bill as law is expected to add the much required impetus to the sector’s growth vehicle in the year 2016, feel real estate experts. 

N. Nandakumar, President, CREDAI Tamil Nadu & Managing Director, Devinarayan Housing & Property Developments Pvt Ltd.

The Bill will become a reality as the Government has given great impetus to Real Estate (Regulation and Development) Bill (RERA).  It is only a matter of time before the Rajya Sabha clears the Bill and consequent adaptation by the State Governments in setting up the Regulatory authorities.  The transition time for this would take about 9 to 12 months and thereafter which, implementation is expected to commence.

The year 2015 has been a turbulent year for the Real Estate industry in India.  The market conditions being extremely volatile would have cascading impact for the immediate future. The Bill will bring the much needed push to the real estate sector’s growth.

Anil Pharande, Vice President, CREDAI Pune Metro and Chairman - Pharande Spaces
The Indian real estate sector has historically been unregulated and unorganized with the later having the largest share of the market. It is in this segment consumers face a lot of problems due to unscrupulous practices followed by ruthless developers. 

The Real Estate Regulatory Bill was conceived to give assurance and clarity to home buyers through various means. After several changes, it has now overcome the important hurdle. As an enforceable law post clearance, it will have a far reaching positive impact on both domestic and global investors. Most importantly, the independent regulators will give homebuyers a strong sense of assurance.

Anuj Puri, Chairman and Country Head at JLL India

The Real Estate Regulatory Bill has seen several changes in the recent past. The latest one, which has made amendments as per a Rajya Sabha committee, is expected to pass in the Upper House in the current session. 

The Bill, if becomes a Law after President’s assent, will provide the much needed boost to the sagging real estate sector and have far-reaching consequences in terms of operating procedures and creating transparency in consumer redressal system. If it happens, it will be a year-end bonus for the struggling realty sector. 

The Bill will bring in much-required accountability and transparency in the real estate sector. It will also guarantee consumer right protection, thereby increasing customers’ confidence and also aid improved quality and timely delivery of projects.

Surendra Hiranandani, Founder and Managing, Director of House of Hiranandani

The Real Estate Regulatory Bill should act as a level playing field between home buyers, builders and authorities. Though we believe that the proposed Bill will bring in transparency and protect consumers’ interests, the lack of clarity on certain proposed measures is likely to add the construction costs through delay. 

This will make the housing projects more expensive thus buying homes will become a distant dream for middle-class and poor.

Setting up of state-wise regulators, compulsory registration of all residential and commercial projects, enhancement of power to grievances cells will help regulate the sector further by bringing in a systematic approach and transparency.

With opposition parties headed by Congress making tough for the ruling NDA to pass Bills in the Rajya Sabha by bringing in various issues to adjourn the Houses repeatedly, several important bills such as GST, Real Estate Regulatory Bill, Prevention of Corruption Bill, Whistle-blowers Protection Bill, and many more are waiting endlessly to see the light. 

Will these parties rise above the petty politics and help nation building by doing some serious works at the Parliament? Only time will tell!

The article also published in Merinews.com.

Tata Value Homes Presents 'Double Your Dollar Benefit' for NRIs

Tata Value Homes, a wholly-owned subsidiary of Tata Housing and one of the fastest growing real estate companies in India, has announced a limited period offer "Double Your Dollar Benefit" exclusively for the Non Resident Indians (NRIs) looking to own a home in India. 

With the Dollar getting stronger by almost 7% from Jan 2015 till date, under the current scheme, consumer can avail an immediate appreciation of up to 7% across the projects of Tata Value Homes in India. The customer can book their dream homes ranging from 17 lacs - 75 lacs across the country by paying a booking amount of Rs. 30,000 on http://www.TataValueHomes.com, press release said.

The registrations for the same have already begun and the bookings would open on 17th Dec on first come first basis.

With this being the most beneficial time for NRI's to invest in their dream homes, Tata Value Homes has designed the 'Double Your Dollar Benefit' where NRI buyers can avail the additional benefit of upto 7% per cent on bookings till the 20th of December, 2015 across all its properties in India.

Announcing this offer, Brotin Banerjee, CEO & Managing Director -Tata Housing, said, "We believe this is the best time for NRI's to buy their dream homes in India.The weakened rupee has made this decision economically sound for the NRI'sas it allows them to acquire aproperty at a lesser amount.To collaborate this trend,we have seen the percentage share of NRI queries going up from existing 15% to upto 18%,and with an endeavor to broaden our engagement with this segment, we have introduced this offer which will furtherincentivize NRI's to purchaseproperty in India."

Tata Value Homes has carefully addressed all the concerns of NRI home buyers by providing houses at par with international quality and design standards. The company is developing large townships and differentiated theme based projects in major and mini metros. 

As a comprehensive real estate developer of choice, Tata Housing straddles across all consumer segments from value to luxury housing. To maintain safety of financial transactions, the company has launched an integrated payment gateway which allows customers to complete the entire home-buying transaction online.

SolarTown Lit Homes when neighbourhood Went Dark During Chennai Floods

CHENNAI: When the whole of Chennai went dark and people remained incommunicado for more than three days during the recent floods, there were some who were leading a normal life with bright homes,fully charged mobile phones and UPS batteries. These were the lucky few who were using solar powered electrical system provided by SolarTown Energy Solutions Pvt. Ltd. (SolarTown).

SolarTown, a pioneer in solar rooftop systems for residential, commercial and industrial customers, has helped Chennai customers with its off-grid solar systems to remain online and provided critical support to them and neighbourhood communities when the State Electricity Board suspended power supply following the devastating floods early December.

Soon after the grid shut down, communications to and from the city had failed, cell phone batteries went dry and that of other personal electronics were depleted. Off-grid solar systems from SolarTown was the sole source of electricity for citizens in Chennai in many areas. SolarTown's customers were able to assist neighbours too by charging their phones and helping them connect with their loved ones. 

“Occurrences like the recent floods in Chennai demonstrated the need for off-grid power sources which can provide critical power during natural disasters,” said Vikram Dileepan, CEO of SolarTown.

The SolarTown's off-grid solar rooftop systems were fully operational during all three days of the grid shutdown in Chennai. They continued to operate even with cloudy conditions, Vikram said.

“Committed to constant innovation, SolarTown has developed a hybrid solution which includes solar microinverters, solar PV, and battery which can work on-grid as well as off-grid during power shutdowns,” said Vikram. SolarTown has successfully implemented this technology into a rooftop solution for residential and small commercial installations throughout Chennai.

Vikram further said that hybrid technology helps customers cut electricity cost considerably. Most of SolarTown off-grid customers have purchased solar system and took advantage of accelerated depreciation tax benefits, with payback periods as low as five years. In addition to purchasing a solar system, SolarTown offers home-owners and businesses the ability to lease a solar rooftop system with no down payment and a fixed monthly lease rate guaranteed to be lower than the DISCOMs, shielding them from rising electricity rates.

With over 100 installations, SolarTown has an impressive customer base of some of India’s top corporates, such as Infosys, Renault-Nissan, Plant Engineering and Aachi Group, and can meet the demand from 1 kW to 300 kW.

After floods its business as usual for Chennai real estate

The recent unprecedented floods in Chennai has indeed put a spanner in the works of the real estate firms in the booming southern metropolis and its fledgling outskirts, albeit briefly.

After almost two weeks of hibernation and bright sun shine for almost ten days now, it is business as usual for real estate firms which are using innovative means to lure people to sell their projects.  While some draw people’s attention by claiming that the areas where their residential projects are coming up are safe as they have not been affected by floods, others are making indirect attempts to sell their projects in worst affected areas in and around Chennai by becoming good Samaritans.

The floods have virtually stopped all construction activities in the southern city and its outskirts. The real estate sector, which is already reeling under stagnation and negative growth for the last few years due to sagging economic growth, will find it hard to withstand the effects of the recent floods.

Several residential projects in Chennai’s most sough-after fringe areas on OMR, ECR and GST Roads and other prominent locations such as Maraimalainagar, Perungalathur, Thoraipakkam, Porur, Poonamalle,  Ambattur and Avadi were remained unsold and the floods have made the situation even worse. People may go choosy in selecting the areas now and most of the ground floor apartments will likely to find ‘no’ takers, feel real estate experts.

Under pressure, the developers and builders are worried to sell their homes. Take for example, the areas in west Tambaram and Mudichchur, which have several independent homes and villas bore the maximum brunt, with almost all of them went under water sinking the silt and ground floors inundating several cars and destroying properties worth crores of rupees.

Before the floods, these areas were one of the hottest destinations for home seekers in Chennai and real estate firms were making no mistakes in tapping the opportunities.  But now, there is not even a single real estate advertisement appearing on national dailies giving details about housing projects in Tambaram, Mudichchur, Nandambakkam or Velacherry. 

All these areas were the worst affected as several lives were lost here and several well-to-do-families virtually came on roads after losing their belongings due to the burgeoning Adayar River on the fateful night on December 1 when officials suddenly opened the flood gates of Chembarambakkam reservoir near Chennai.

After more than ten days now, some areas in KK Nagar, Valasaravakkam, Madippakkam are still under knee-deep water.  But sun slowly has started shining again on real estate firms in Chennai.

One can see a lot of real estate ads making their way in local and national dailies luring people with discounts and goodies to sell flats and plots, and in another month or so, people may even go for sight visits in areas of west Tambaram, Madipakkam, Keelkattalai or Mudichchur to purchase properties forgetting the fact that these areas were once the water bodies and now busy residential areas, thanks to the “efforts” taken by real estate sharks and corrupt officials.

With the state government, private organizations and enthusiastic individuals taking efforts to help the affected people, real estate firms in Chennai are now busy as usual, trying to reach out to their customers by all available means to sell their projects taking advantage of Chennaiites eternal affinity of owing homes.

K Ramanathan

Also published in Merinews.com.

Cabinet approves Real Estate (Regulation and Development) Bill

The Union Cabinet, chaired by the Prime Minister Narendra Modi, has approved the Real Estate (Regulation and Development) Bill, 2015, which was forwarded by a select committee of Rajya Sabha which has done some modifications from the original draft.

The Bill will now be taken up for consideration and passing by the Parliament, a PIB release said. 

The Real Estate Bill is a pioneering initiative to protect the interest of consumers, promote fair play in real estate transactions and to ensure timely execution of projects. 

The Bill provides uniform regulatory environment to ensure speedy adjudication of disputes and orderly growth of the real estate sector. It will boost domestic and foreign investment in the Real Estate sector and help achieve the objective of Government of India to provide ‘Housing for All’ by enhanced private participation. 

The Bill ensures mandatory disclosure by promoters to the customers through registration of real estate projects as well as real estate agents with the Real Estate Regulatory Authority. 

The Bill aims at restoring confidence of consumers in the real estate sector; by institutionalizing transparency and accountability in real estate and housing transactions which will further enable the sector to access capital and financial markets. 

The Bill will promote orderly growth through consequent efficient project execution, professionalism and standardization. 

The salient features of the Realty regulatory Bill are as under: 

• Applicable both for commercial and residential real estate projects. 

• Establishment of ‘Real Estate Regulatory Authority’ in States/UTs to regulate real estate transactions. 

• Registration of real estate projects and real estate agents with the Authority. 

• Mandatory disclosure of all registered projects, including details of the promoter, project, layout plan, land status, approvals, agreements along with details of real estate agents, contractors, architect, structural engineer etc. 

• Deposit of specified amount in a separate bank account to cover the construction cost of the project for timely completion of the project. 

• Establishment of fast track dispute resolution mechanisms for settlement of disputes through adjudicating officers and Appellate Tribunal. 

• Civil courts jurisdiction prohibited from taking up matters defined in Bill, however, consumer court allowed to hear real estate matters. 

• Promoters barred from changing plans and design without consent of consumers. 

• Provision of Appropriate Government to make rules for the matters specified in the Bill, and the Regulatory Authority to make necessary regulations.

JLL Forms India Desk in Dubai to Boost Cross-border Realty Investments

Jones Lang LaSalle (JLL), the leading real estate investment and advisory firm, has announced the launch of its ‘India Desk’ in Dubai, a new medium aimed at facilitating cross-border investment between India and the GCC.

This new initiative will support GCC investors in managing their real estate investments and holdings in India while also advising investors and developers from India on entering the UAE and wider GCC markets. The desk is currently advising investors in Dubai to fund a development project in Mumbai, and is also shortlisting land acquisition opportunities in India for an Abu Dhabi-based group.

Anuj Puri, Chairman and Country Head, JLL India said: “We continue to see a significant interest from investors and developers from the GCC for India, and vice versa. By establishing this channel, we will ensure that our clients receive the same high quality of services that they are accustomed to across the globe.”

Commenting on this new initiative, Gaurav Shivpuri, Head of Capital Markets JLL MENA said: “India has had a long-standing partnership with the UAE, and it continues to play a huge role in the region’s economic success. As business interests resonate across borders, it is an opportune time to set up a platform to facilitate cross-border investments.”

The desk will be led by Swati Shanker, Lead – India Desk, who is based in Dubai and Amit Pande, Head of Private Wealth, India & Middle East,  based in Mumbai.

Brigade Partners with Kin Housing to Sell Housing Projects in Bangalore

Brigade Group, a leading builder based in Bangalore with 29 years of industry experience have joined hands with Kin Housing to promote few projects in Bangalore as a part of New Year campaign.

As a part of the marketing campaign, Brigade Group is selling five projects across different locations of Bangalore through digital medium using Kin Housing’s digital distribution platform. 

All the projects come with special new year offers giving customers a chance to buy quality branded homes at a lesser investment then normal price.

Discussing the launch of this campaign, Viswa Prathap Desu, V.P Sales and Marketing, Brigade stated: “Kin Housing has a 360 degree digital distribution & lead generation model coupled with a strong offline property advisory team which enables a unique online-offline model for customer acquisition and engagement.  This approach will help us reach out and service customers better”.

Kin Housing was started around 18 months back and provides real estate advisory for projects across India with focus on Bangalore & Pune.