India Imposes New Rules on Property Developers

The Confederation of Real Estate Developers Associations of India (CREDAI) is imposing a new code of conduct on real estate developers in the hopes of instilling more transparency and accountability in the market. 

Experts at CREDAI say middle-class consumers are complaining that developers are taking advantage of them by demanding additional feels upon move-in, delaying taking possession of properties and failing to meet basic development standards. The agency is requiring its 8,000 members voluntarily sign the agreement as part of the self-governing system. The agency reported success in a pilot program after which the new code of conduct is modeled and has invested in advertising to spread awareness to consumers of their new rights.

A new code of conduct has been agreed by the Confederation of Real Estate Developers Associations of India (CREDAI) with the aim of resolving complaints about the house buying process.

The most common complaints are a delay in taking possession of a property, failure to meet commitments, additional money being demanded above the agreed price and ambiguities over sold areas.

‘The primary concern of the consumer is transparency and accountability. Many middle class customers carry the perception that the developers are not answerable and that the only recourse is litigation which is a long drawn and messy process,’ said Pankaj Bajaj, president of CREDAI for the National Capital Region.

CREDAI has over 8,000 members and it requires them to sign a Code of Conduct which is a self governing mechanism requiring them to adhere with prescribed levels of transparency with their customers.

Apart from committing to being transparent with the customers on area calculations, approvals status and specifications, the Code of Conduct requires the developer to declare what compensation will be paid if there are delays delivering a project.

According to Bajaj the aim is to differentiate good developers and fly by night operators in a sector which has been maligned for its opaqueness.

CREDAI has also launched a Consumer Grievance Redressal Forum where any member of the buying public can lodge a complaint against a CREDAI member.

‘We realized that self governance and peer pressure are powerful tools. We have been running a pilot project of this exercise and found that 90% of the complaints against developers got resolved due to the peer pressure from the CREDAI forum on the concerned developer,’ explained Bajaj.

The Forum has a panel of experienced developers and legal experts who decide on the complaint. Complaints can be lodged on the CREDAI website. There is also an advertising campaign to increase awareness of the code.

‘Hopefully, this programme will succeed in aligning the faith of the consumers with the intent of fair and transparent developers. We also hope that as a result of this, the market is going to start discounting non transparent developers where there is no redress forum for complaints,’ added Bajaj. This article was originally published at Property Wire.

Union Budget 2012: NAREDCO recommendations to ministries will help accelerate housing development in India

The real estate industry in India has emerged as one of the most vibrant sectors in the country, providing jobs to millions. The sector plays an important role not only in providing shelter to people, but also in rapid urbanization, which is a key to speeding up economic growth in the country.

But the sector, in the last couple of years, was not given its due in the Union Budget. Real estate developers associations have prepared a number of wish lists to achieve a higher growth in the sector. 

The National Real Estate Development Council (NAREDCO) made a number of recommendations in this regard to the ministry of finance and the ministry of housing and urban poverty alleviation for inclusion in the Union Budget 2012-13, with a view to accelerate housing development in the country.

Declare housing as infrastructure and bring it under Section 80IA of  Income Tax (I-T ) Act: 
 This will enable developers and housing finance institutions to raise funds at low rate of interest from domestic and foreign markets ,which,at the moment,is confined to Indian banks and public equities at a very high rate of interest.This will also incentivize developers by bringing down their income tax liability. Most countries, and the world Bank treat housing as infrastructure.

Special incentive to developers to undertake construction of smaller houses under Section 80IB (10) of IT Act: 
 More than 90% of the shortage in housing is in the category of smaller-size houses (300-1 ,200 sq ft built-up area). Under Section 80IB (10) of I-T Act 1961, there used to be an incentive for 100% deduction of profits derived from the construction of housing projects up to 1,000 sq ft built-up area in Mumbai and Delhi,and up to 1,500 sq ft built-up area at other places.

This was withdrawn through Finance Act 2009.As this was a big incentive for developers to construct smaller-size housing units to suit the requirements of low- and medium-income households, it has been suggested that this provision should be reintroduced and 100% deduction of profits derived from constructing housing units up to 1,200 sq ft built-up area be allowed. This will go a long way in addressing the housing requirement of LIG and MIG categories .

Increase in deduction limit on account of interest payment on home loan from Rs 1.5 lakh to Rs 3 lakh under Section 24 of I-T Act 1961: 
 Deduction of Rs 1.5 lakh, paid as interest on home loan, was introduced through Finance Act 2001,and made effective from April 1, 2002. Before 2001, 100% of interest paid on home loan used to be deducted. Ten years down the line, merely on the basis of cost inflation indexation, Rs 1.5 lakh of 2001 would be close to Rs 3 lakh in 2012.

Also, the indexed cost of Rs 20 lakh property in 2001 would be around Rs 40 lakh in 2012.Thus,merely on the basis of cost indexation,there is a strong case to increase the deduction limit, on account of interest payment on home loan, from Rs 1.5 lakh to Rs 3 lakh. 

   Increase in exemption limit of rental income under Section 24 (a) of I-T Act 1961: 

Supply of rental housing in the market is insignificant because of the low rate of return on high investment in housing property. As everyone can't own houses for various reasons, 40-50 % of the total housing stock ought to be on rentals in the market to meet the housing needs of the low-income group (LIG), who have no capital to buy, and of floating population. 

It has been suggested to increase the deduction limit from 30%, presently available under Section 24 (a),to 50% and levy tax only on 50% of the rental income. This is necessary to incentivize people to build or buy houses for renting purposes and, thus, increase the stock for rental housing. 

Exemption from capital gain if proceed from transfer of a house property is utilized for purchase of one or more houses or invested in capital gain bond under Section 54 of I-T Act 1961:
As per the provisions of Section 54 of I-T Act 1961, investment of capital gain from the sale of a house, if made to purchase one house, is exempt from capital gain tax. If capital gain is more than the cost of the house, tax is payable on the balance. 

It has been suggested that where the entire capital gain is invested in purchase of residential property (one or more) or invested in capital gain bond, it should be exempted from capital gain tax. It will be a big incentive for investment in housing. 

Service tax on residential construction : 
Imposition of 10% service tax on residential construction, when the government is struggling to meet the demand-supply gap in housing, especially in low-income groups, is a deterrent , as it raises the cost by about 3%. Therefore, the service tax on residential construction should be withdrawn . 

Fund for housing: 
This will be helpful in creating a dedicated affordable housing fund, in line with infrastructure fund, exclusively for developing housing of EWS & LIG. Also, it has been suggested that this fund should have access to pension, insurance and provident funds to meet the long-term investment requirement of the housing sector. 

Measures to down-market housing finance to poor sections of society: 
It has also been suggested for developing suitable mechanisms based on interest subsidy, funds pooling and relaxation of mortgage requirements, as also instruments like micro financing, community pooling, agricultural land mortgaging and annual installments, etc,to meet the housing loan need of urban poor and rural households. There is also a suggestion for graded scale of grant, subsidy and loan for social housing to ensure that the lowest strata of poor get the maximum benefit. News has been originally published at Economic Times.

REALTY PRICES TO STAY HIGH AS DEMAND RISES

BANGALORE | NEW DELHI: Home Prices are unlikely to fall this year as sales have picked up across most metros in the past few months, according to bankers and realtors. Property Sales across major cities, such as Bangalore, Chennai, Gurgaon and Noida, rose on increased buyer interest, Bank of America Merrill Lynch said in its report for the fourth quarter of 2011. While sales in Gurgaon averaged 5,200 units over the last eight quarters against an average of 6,100 units on offer in the same period, Noida saw a marginal rise in home purchases. Quarter-on-quarter home sales in Mumbai, however, fell 25%.

How you can save yourself from rising EMI ?

"Sales volumes across cities (Mumbai being an exception) surprised us positively. Mumbai is headed for a sharp correction by another quarter or two while other property markets may remain stagnant due to rising unsold stock," the report said. The Confederation of Real Estate Developers' Associations of India (CREDAI) also said sales have picked up despite builders continuing to hold on to prices. "Sales have picked up in the last few months and developers have not reduced prices as input costs have gone up. At first chance, they will increase rates by 10-30% across markets," said Lalit Kumar Jain, president of the 6000-member association. "With inflation easing and chances of the cash reserve ratio coming down, builders are not so desperate (to cut prices) anymore as they have been able to generate sales," said Renu Sud Karnad, managing director of HDFC Ltd. one of India's biggest housing finance companies. Besides, builders are unlikely to reduce prices as they are managing to break even with 40-50% sales. Prestige Estates projects has sold 30% stock in its newly launched property in Cheenai in just a month. "We have clocked total sales of 1,464 crore in the last nine month as compared to 1,385 crore in financial year 2011," said Venkat K Narayana, CFO. Mumbai-based property firm Lodha Developers said it has seen an uptick in sales since January. "People have been waiting for a price correction but chances of that happening are very slim," R Kartik, chief marketing officer, Lodha Developers. "Properties in the range of 25-30 lakh are moving faster but the chances of NPAs in that segment is more. Our experience shows property prices have always been on the upside. A correction, if any, would be too small," said SP Singh, general manager (retail), Punjab National Bank. Since last two quarters some 125 million sq ft has been added in new launches in the country's top six markets. Bangalore and NCR saw the highest number of new launches at 48 m sq ft and 31 m sq ft each followed by the Mumbai Metropolitan region with 16 m sq ft, Pune 16 m sq ft and Chennai 12 m sq ft.

Unsold Inventory

But currently only 17 m sq ft, or 14%, of the total space launched has been purchased, adding to the total unsold inventory, said Pankaj Kapoor, founder of Liases Foras Real Estate Rating & Research. In Mumbai, unsold homes are now three times the 2009 levels at 29,000 units. Industry observers said it will take 18 quarters to sell them. Bangalore saw the steepest rise in available-for-sale residential units to 31,000 in the fourth quarter of 2011 from 18,000 in the year-ago period. In Noida, unsold residential units have risen to 75,000 in the last quarter of 2011 from 68,000 a year ago. Comparatively, unsold inventory levels were flat in Gurgaon at 19,000 units, and builders hoped to sell these units in the next three quarters. "Sales in new launches have been good but older stock is not selling. There has been a spurt in new launches in Bangalore, Pune, Chennai and the NCR where pre-sales, which are at a lower value, have done well," said Kapoor. In view of the huge unsold stock in major cities, equity funds and banks have called for a 10%-15% price cut. "There has been no concern on disbursement expect for Mumbai, where builders need to bring down prices," said Karnad. "Despite being saddled with high inventory, no significant correction in prices has taken place in these markets yet. In fact, some pockets have witnessed rapid prices appreciation in the last nine months," said Rakesh Khanna, a deputy general manager who handles housing at State bank Of India. "A decrease in residential real estate capital values will significantly stimulate housing demand," he said. News  has been originally published at Economic Times

Steps to find the best Real Estate Company Noida

Home is a place where we live, relax and plan to flourish in life so, it matters a lot. Nowadays nothing is untouched with competition; same case is with real estate company Noida. Noida is SEZ and people understand the fact that they can get here everything what they wish nearby their dream home whether it is a good school, college, office etc so they are interested in buying apartments in Noida.
Noida is not only an ideal place to buy flats in Noida but also for investing and renting purpose. For getting all these benefits in a single deal, a good real estate company must be approached. To find out the best real estate company Noida, some steps are needed to be considered i.e.
1. There are two ways to find out the best real estate company; by personal visit and second one is, via internet. It is better to take the help of web world as it is flooded with unlimited options and information.
2. Firstly, shortlist some good real estate companies by searching on internet. You can calculate their goodness and reliability by reading the feedbacks of their customers .If customers are repeating, it means they are giving good deal of properties with ease so people are reverting back to them.
3. Find out the number of years of their existence in market from their website. If it is not new, it means they are trust worthy.
4. After short listing the company, check the list of properties with them to deal and also their locations..
5. And lastly, but very importantly, do a wise selection of property from such list according to your need and budget.
6. If you really want a good and trusted deal of your Simplex and Duplex apartments Noida, consider such company who are not hesitating in personal meetings and dealings.
7. Negotiation really matters in every deal, so do a wise negotiation on cost factor with them.
8. At time of negotiation don’t forget to inform them indirectly that you are well known of prices running in market and try to quote some prices too .Such quoting will help you really because no any real estate company wish for losing his deal due to some silly amount reduced by his competitors.
Buy considering such steps you will surely find a good deal of your home at friendly rates at your preferred location.

How real estate company Gurgaon help you find luxurious property?

When it comes to buy luxurious property, you must look no further because real estate company Gurgaon has always been the best way to find a great property for your needs. When you prepare yourself to buy a home, you don’t just invest money on property but you spend your lifetime wealth on your dreams. Real estate companies in Gurgaon are completely aware with the value of your dreams and for this reason they always intend to make you buy best of the best property at affordable cost. Their efforts have always been amazing and there is a huge list of people whom real estate companies in Gurgaon have satisfied.
Although Gurgaon is known for its growing proximity in industrial area but apartments in Gurgaon have also been a most essential component of its popularity. The thing which attracts the first time visitors to Gurgaon is “Apartments in Gurgaon”. They have been built in such way that everyone dies to have such apartments for themselves. Apartments in Gurgaon seems no less than a palace, they are so eye-catching and always been an ultimate dream of every single person to buy such apartments.
Apart from apartments there is one more thing which attracts people a lot, that is “Flats in Gurgaon”. Being a human being you always dream to have a flat where you can spend your whole life with great ease and comfort, but sometime it gets bit tough to find such flats. This is where “Flats in Gurgaon” come into limelight. Gurgaon flats have specially been built by keeping the needs of common people in mind. They have all sorts of feature which you always dream to have in your own home. The most important thing is that they are located in Gurgaon area which is a city of success in itself.
If you are not in mood to buy apartments and flats then you must think of Villas in Gurgaon. Villas in Gurgaon are considered to be the rare kind of living areas which is completely different, comparing to houses or flats. They are located in an open location which is holistically covered with the magic of nature. These villas are made up with some rare kind of designs and this rareness keeps them different to any other home of apartments. No matter what kind of property you are looking for whether it is villas, apartments or flats. Gurgaon fits in accomplishing you all needs.

Real Estate Investment in Noida

Running a real estate company in Noida is a profitable business. Noida is flouring in terms of the infrastructure and the educated population. The main reason behind this major growth is the migration of people from Delhi who are in search of a better place to make their permanent residence. Excellent connectivity by roads and the Delhi Metro are other reasons that make Noida a great place to invest one’s money into real estate. All these factors also make Noida one of the best cities in the Delhi NCR region. Noida is also proud to be the most tax-paying district in the UP due to the high population of well-earning and educated professionals.
A significant growth in population can be seen in the city due to the fast-paced development of IT and ITES companies in Noida. A boom of multi-national companies also has made it to the urgent requirement for apartments and residential villas in Noida. This has in turn increased the demand of residential plots and apartments.
Due to the inflation in prices of properties in Noida, investors find this city a great opportunity to invest in residential apartments in Noida. As corporate offices are also booming up in the city, there’s a large need of commercial apartments in the city which again is a great advance in the real estate industry.
Profits are assured if the investment is made in a real estate business in Noida. Since Noida is a city very close to the capital city, Delhi; it is also one of the favourite spots for NRI investment. Non-resident Indians never find it hard to invest in luxurious apartments or flats in Noida as they can easily have their second homes next to the capital. Due to a large amount of money flowing through foreign exchange, Noida is growing in terms of its real estate also.
The reasons of investing in a real estate business in Noida are stated above. Noida is one of the fast growing cities of the nation where any investment is not going to be a loss. When people flock to this place with dreams of their career, they also find the place a great place to live in. Noida has every kind of modern luxurious apartments. Noida is thus one of the most sought-after cities in the country and is competing to be the best of its kind. Flourishing industries and great transportation facilities also is an added advantage to this city.

3C Sports Village|3C New Project Noida|Sumangalam

3C’s once again coming with loads of amenities and investment opportunity…!
The Company presents India's Largest Green Residential complex dedicate to 3CSports Village at sector 78-79 Noida. 3C Sports Village spread over 180 acres land area and offers 900 residential apartments. It has been designed around shaded landscape courts with water bodies and plants Which helps in reducing the ambient temperature.
3C Sport Village a perfect blend of Residential blocks and sports activities within single complex located at sector-78 &79 Noida. One of the most prestigious projects in this region, will be developed by 3c Builders in a tentative rates-3500 / sqft –4000 /sqft. The first phase of the project will be completed by December 2013. The project is offering 2/3/4 Bedroom Luxury apartments ranging 1100-2000 Sqft. with excellent amenities such as :
• International standard academic for Golf
• Cricket stadium
• Boxing
• Badminton Court
• Lawn Tennis Court
• Swimming ,Athletic ,Hockey
• Football, squash

It also enjoys seamless connectivity with all the major location of the city like:
• 10 minutes away from DND Flyway.
• 10 minutes away from Sector 18.
• 2 Minutes away from Lotus Boulevard Sector – 100.
• Next to proposed Metro Station.

About 3C Company
The 3C group, a very well known name in the real estate scenario in India, is one of the leading builders and developers in and around the Delhi NCR. The company’s mission is to be globally recognized as a Green Developer that is Creating, Caring and Conserving, which also form the core values of the company.

3C Group is one of the big players in the league of developers of residential property in Noida, Greater Noida and other parts of Delhi NCR. The 3C Company is dedicatedly involved with the development of environment friendly Green Buildings, be it commercial or residential projects. The builder has to its credit the development of some of the most successful residential properties in Noida such as 3C Lotus Zing, Lotus Panache and Lotus 300.

For more information log on to: www.3cnoidaprojects.com
Call: 9717779685
Visit Us At: F – 27, 28 Sector 18, Noida, Uttar Pradesh 201301