Property Developers scurry to Complete Ventures before new law come into effect

The new real-estate regulatory bill has put property developers in frenzy, as they are speeding up construction work to avoid these new regulations. It may be a boost for the buyers who have invested in these projects though, especially if they had invested in a venture which had been delayed.

This new bill is said to put ease on the new buyers as it secures their rights as home buyers, as it mandates registration on ventures which includes those projects too that have not acquired a completion or right to occupancy certificate.

Real-estate experts claim that registration of these ventures may still take time of 15 to 18 months, as those ventures which are 60% to a 70% complete will have enough of time to register their properties. Registration means the developers will have keep aside the funds collected by the buyers and pay interest in case if there is any delay. Now according to the law a customer can easily launch FIR against a builder if the builder is fails to fulfill the legal norms.

According to reputed property Research Company, it says that in the top 27 cities of India there are close to 17,000 projects which are under construction and in that 56% to 60% are complete. An experienced real estate analyst of Mumbai based company has said the real-estate bill will be a boost to finish construction more quickly as registering existing projects might delay them further.

This real-estate regulatory bill has been passed by both houses of the parliament and is seeking approval from the President. Once everything is in place sections relating to registering of real-estate projects and agents and the responsibilities of the promoter will be informed. Completion of ventures will be dependent on many factors which includes a financier being lined up.

According to the real estate folks, many ventures all over India that are 60%-70% complete, and it will speed up its projects completion before the bill is in effect. When projects under construction register with the regulator, they need to comply with the same rules as new projects.

Builders are expected to deposit 70% of the amount collected from the buyers in a separate account to cover the cost of construction which includes land too. Property Developers will also have to pay the same interest rate for any delays on their end similar to when the buyers do when they fail to pay the builder.

The National President of the Confederation of Real Estate Developers association of India, Getamber Anand, said the desire of developers will be to complete existing projects in the frame-time available to them. Around 15 to 18 months should be perfectly fine for builders to complete ventures that are 60% complete. If the pace of construction is picked up it could see an increase in demand for raw-materials like cement and steel revitalizing economic growth, says Pankaj Kapoor, the Managing Director of Liases Foras. It all depends how wise the developers are with the money as many of the real-estate developers are strapped for cash.

TGS Layouts is a property developer of Bangalore it has many completed projects in the city you can read TGS Layouts Customer reviews to know about the company more closely. It develops residential layouts and sales plots of land for investors.

Emerging destinations with affordable property in Bangalore

Even though the sales volume of mid and high budget housing units of Bangalore are fluctuating according to the nature of the market segment, still affordable housing sector has shown a constant demand in the outer region of the city. The availability of large unit of land at a low price in Bangalore and the stretch of the city from every corner has stimulated its demand in real estate. The key factors for the rise of demand in land plots at outskirts are Metro Rail & the peripheral ring road.

The Commercial real estate market has shown significant changes and witnessed many new commercial spaces in the city. There is a rapid demand in  the commercial space in the city brings more income opportunity for realty investors and Bangalore holds the first position among all the cities in the first half of the year 2016.

The industrial growth in the peripheral districts of Bangalore has improved its connectivity with the city and since lands in those areas are very cheap so many land developers came with their affordable projects. These projects were made to meet with the demand of residential places by the employees of the industries located in the adjacent districts of Bangalore.

Localities like Anekal, Jigani and couple of other locations closer to NICE Road are very attractive destinations for real estate investors for the increasing demand of industrial areas near Bommasandra and jigani. Mysore Road is one among those places where one can find affordable residential land plots for sale in Bangalore from any land developer. The old madras Road connecting Bangalore and Chennai is famous for Japanese multinational companies also suitable for property investors as well.

Let’s check out other areas too where one can find an affordable property with high future prospects and return surplus opportunity.

Properties near Kanakapura road

Kanakapura Road represents as south Bangalore is blessed with its superb connectivity to the center of the city. The infrastructure and transport facility of Kanakapura Road made it as the most preferred suburb area of Bengaluru. The under construction Ring Road which will connect all the major highways of the city is just an added benefit for the investors who are buying plots near Kanakapura Road. The major infrastructural developments like educational institutions, Metro lines and Roads widening projects are certainly worked as a catalyst for the rise in the price of the property here. Considering the future developments, it is a reliable locality where investor as well as user can earn a handsome return.

Properties Near Sarjapur Road

The diversified price for the properties located in different small sized micro places has attracted every real estate buyer to think for lands near Sarjapura road. This area has a stabilized demand of low, mid-sized properties and luxurious buyers looking villa properties. The easy access to all large IT hubs in the city like Electronic City, Whitefield and the Outer Ring Road are keys to influence the demand of the properties in this area. The presence of many reputed schools, hospitals and general infrastructure pointing sarjapur road is a good locality among all for a better return on investment.

Properties Near Nallurhalli

As an upcoming location of whitefield; Nallurhalli is known for its greenery and lakes. The presence of Sigma Tech Park, couple of Malls and closeness of ITPL are the reason why Sites in Whitefield near Nallurhalli is demanded. This location has seen its development through Villas and Bungalow projects, although it is near to many IT projects but still it provides apparently low price residential properties compared to other places of Whitefield. With a yearly appreciation of ~8% buyers can invest here for a marginal profit from rental income.

Properties Near Kengeri

Kengeri is well settled, as a satellite township of Bangalore where land is in demand for industrial as residential developments. The requirement of residential lands by the IT professionals working near the IT tech parks of Mysore Road are fulfilled by the residential lands in Kengeri. The excellent connectivity to Outer Ring Road, NICE Road, Mysore Road and the expansion of Namma Metro project transform it to an excellent choice to live here. Kengeri is well developed with adequate social infrastructure and commercial space. Comparing to other outskirt areas it is very affordable and has a steady growth of value appreciation.

Properties Near Budigere

Budigere once a village of Karnataka is now becoming a developing residential location with the stimulus of IT/ITes of nearby areas. The residential requirement of industrial units has been fulfilled by Budigere as it is close to Brookfield and Whitefield. This place has a surplus of demand as it offers residential units comparatively at a low price than its neighbors. Many real estate builders and developers are coming with big residential projects here and within few more years may be the price of this area will be skyrocket. It has a good infrastructure and depending on the amenities the property value appreciation of this place is in between 2 to 3 percent per year.

Properties Near Magadi Road

Magadi Road comes under the western part of Bangalore and can be reached easily from the center of the city. Since most of the developments in terms of residential as well as the commercial area are concentrated on east and south Bangalore so western part of Bangalore remains relatively greener. The connective roads like Nice Road and outer ring road give Magadi a good access from every part of the city. There are many land and layouts developers who are eyeing on these locations to target buyers who are looking to live in greenery and out of city pollution. Since these area doesn’t offer many residential or commercial properties so the micro-market offers land plots in Magadi road at a very cheap price.

Properties Near Hosur Road

Once considered as a village in Bangalore has now witnessed highest appreciation value in the last year. Hosur Road falls under south Bangalore along with the top locations of the city like Begur, Singasandra, EC and Kudlu gate together. There are many well-known builders and land developers are having their ongoing projects here and one can buy land in an affordable price at Hosur Road.

Properties Near Yelahanka & Doddaballapur Road

Yelahanka a satellite town grown in the suburban areas of Bangalore was once completely dependent on the manufacturing units till the inauguration of International Airport. The surplus of land and big government projects opened many gates of opportunity to this locality for offices and malls. With its super connectivity and easy access to railway and the airport, Yelahanka became one of the measuredly developed localities of Bangalore. Still, there are residential lands available for development and it can buy a marginal yearly profit for investors.

Properties Near Horamavu

Horamavu located in the eastern zone of Bangalore can be accessed by the airport or outer ring road of Bangalore. It has a good number of residential layouts developed by numerous land developers and localities like Banaswadi and KR Puram are closer to it. The measure drawback of this area is traffic near railway crossing however the government has organized an underpass railway project to overcome from this situation. Couple of lake encroachments has disturbed partial life of the locals still the focus of infrastructural development on the northern region of Bangalore will definitely going to bring residential demand in this area.

Properties Near Mysore Road

State highway 17 which connects Bangalore and Mysore, this 62 kilometers long distanced road between both the states of Karnataka is named as Mysore Road. Now the scenario has completely changed and it has developed to a 6 lane road named NH-275. With this development of connectivity, the price of the peripheral lands near Mysore Road has shown a good hike in the past year. Also, the Namma Metro project was another factor why Mysore Road is on demand for every real estate investor now. Here one can find mid-budget as well as ultra-luxurious projects developed by land developers and builders.

Bangalore grows every day by its size and populations from the mutants, the above mentioned demanded localities for its affordability today may not fall under the top 10 emerging locations of Bangalore tomorrow. Land developers of Bangalore may create more affordable corridors for the city but among all the cities Bangalore still own the title of being a leading real estate destination of affordability.

TGS Layouts is one among such residential real estate land developer who believes in making housing segment affordable for all. Check TGS Layouts Reviews to know what their customers are saying about their services and amenities in their developed layouts.

Telangana Govt. on the process of digitization of land records

The Telangana government has pledged on an ambitious plan of digitalizing the land record system with its entire history. Land records were not properly maintained by the revenue authorities as per the government sources. That is the reason the state government has embarked on the plans of digitization of the land records in Hyderabad, Nizamabad and the Warangal districts. The sources say that this will be done as a pilot project and if successful the whole of the state’s land records will be taken up for digitization.

The district administration of Hyderabad has asked the tehsildars of 16 mandals to verify and check the available land records which they have at their disposal.  In few of the mandals the revenue officers reported to have land records pertaining to or even before the independence.  

The tehsildars were directed to collect and compile all the records and take corresponding images of the land records so available. He should also collect and compile information like present owners, original owner, year of purchase and number of transactions, etc.  After this exercise the tehsildars can file a report on the land availability from the data compiled.  

Rahul Bojja, present collector of Hyderabad has already issued instructions to the 16 tehsildars to start the verifying process and the digitization also. The process of digitization started a couple of months ago but was facing lot of bottlenecks. Now it is required that every land is counted and the details thereof collected. Six months of time have been allotted to the tehsildars to complete the date compilation. After the due collation of the data the digitization of the land records will start as per the sources. 

On completion of the digitization process the data will be linked to the website of the Telangana Government for the public to access it. The estimated time given by the Hyderabad government is six months.  

Recent escalation in land prices pushes the guidance values up

Land among all real estate property prices increases at a faster rate than even apartments as well is the opinion of the expert realtors and market watchers. The reasons are many. One of the main reasons for this is that the floor space ratio of land compared to apartments is very high.  This makes the demand of land higher but on the contrary the supply is limited. Thus the land value escalations in most of the cities are higher than the value increments of the built up apartments opines the expert realtors. But what is the range of the escalation of values in the last year? We have a city wise analysis below.  

In Delhi and the NCR region the price escalation from all the four corners of the city was in the mean range of 13.5 percent.  

In Mumbai the mean price increment as noted in the table in the four directions of the city was in the range of 26.875 percent which is quite high. 

In Bengaluru, the IT capital of India, the price escalations in the North, East, South and West of the city has a mean increment of 19 percent which is also quite high.

If we look at the situation of Pune the table below shows the price increment of land in different areas of the city

.

According to the table above the price increment of land values in Pune also shows an increment of an average of 30 percent in the last year which is quite high. 

Notwithstanding all the data shown above the expert realtors and trend watchers note that there are cycles of real estate and the economy which also has an impact on the increment of land prices. But considering all these factors one concludes that the increment in prices of land is of the order of at least 12 to 14 percent annually with the price doubling in five years.

Increase in Guidance Value owing to increase of Prices in Bengaluru 

There is a guidance value of land and property in every region that is determined by the local authority which determines the stamp duty that has to be paid to the state. No matter what the value of the property the seller attributes, the guidance value is the minimum that the stamp duty and other charges are to be paid on during registration. 

During the last year Bengaluru has noted a huge and a sudden jump in the guidance value of properties in different places of Bengaluru where the myth goes that the return is always above 20 percent on real estate year on year.  Let’s look at the table below which points out that the guidance value is very high in Sadashivnagar. It touches the mark of Rs. 20, 000 per sq. ft. Cunningham Road is also one of the areas where the guidance value is of that range of prices. 

UB City is one of the most posh areas of Bengaluru where the revised rate is Rs. 21, 350. Commercial street,Kanakapura Road,MG Road and Brigade Road are few of the areas where the guidance value has also been increased considerably. We see that this increment in guidance value of land has been increased after 15 months owing to increase the amount in the exchequer as there has been a slump in the revenue of the government by 10 to 15 percent this year.

Outlook

The realtors say that this is perhaps the best time to invest in land especially in cities like Bengaluru, Hyderabad, Pune and Tier II cities also like Ahmedabad as the infrastructure development is at an all-time thigh. There are many suburbs that are being developed in the cities like Bengaluru and Pune with the possibilities of higher rate of return on investment. If you think of the economic cycles also the market watchers and economists opine that this is the ideal time to invest as the market will go to a peak again in the late or middle of 2020’s. Thus the investor will get a quite few years of time to reap the benefit of the period when the prices would be at its peak.