Taking cues from its Ghar Nu Ghar affordable housing scheme for women in Gujarat that saw nearly 28 lakh women sign up, is now cashing in on the need for affordable housing in the run-up to the general elections in 2014.
Real estate developers and consultants today said land prices in the country will go up, affecting housing rates, after Cabinet approved the Land Acquisition Bill.
The controversial Land Acquisition Bill was today cleared by the Union Cabinet. The bill now has the mandatory clause that when land is taken for private projects, the consent of 80 percent of the people is required.
The finance ministry wants credit to real estate eased even before developers bring down prices. This will not help revive the industry or encourage home buying
Looks like the Reserve Bank of India and the finance ministry are again at loggerheads. However, this time it is not over interest rates, but over taming soaring realty prices.
The devil lies in the detail. The impact of the hike in circle rates will have little on speculation as there are only very limited number of transactions happening in upbeat colonies which are most impacted by this move
Home sales are slowing, which is crippling the builders, who are facing project delays, which in turn is impacting home delivery. This is again a pain for buyers as it increasing litigations in the sector.
The decline in value of rupee over the last one year is luring NRIs living in the UAE to buy property in India even if the price stretched up to Rs 1 crore or more, according to a survey.
For middle-class families interest rates play a limited role in house sales. This is why despite the cut in home loan rates and attractive discount schemes being offered by various developers, buyers are still sitting on the fence.
Politicians, bureaucrats, big builders and the land mafia control the real estate market to the point where nobody can afford to buy a home. And it is this nexus that ensures prices do not crash as it would wipe out the value of their slush funds.<br /><br />
By asking the banking industry to fund realtors, the government is only exposing them to more risk. If too much money is made available to them, developers will continue to hoard projects and a price correction will be delayed.
Urban housing shortage in India has plunged from 24.7 million at the beginning of the 11th five year plan in 2007 to 18.78 million for the next five year plan from 2012 to 2012, according to a government report.
Government's decision to operationalise FDI in multi-brand retail would help the realty sector as the move would create demand for retail space and boost mall development in the country, real estate developers and property consultants said.
Affordable housing hasn't really taken off in Mumbai for the reason that neither the politician nor the builder wants to see prices fall.
Political uncertainty over Telangana has dragged down real estate sentiment in the city of the Charminar, but analysts say its fundamentals set it up for a rebound.
The response comes after Noida Extension Flat Owners Welfare Association had last week refused to pay the hike in rate as was being proposed by various firms.
This is because a person who has already bought a house or a plot does not have to pay more or the difference in value for the already purchased property. The only extra expense incurred by the purchaser will be the cost of stamp duty.
The new law will make the cost of land much higher for businesses and is unlikely to put a stop to protests by millions of people determined to defend their livelihoods or get fair compensation for losing their land.
Even though the fight is between the government and the developers, it is the end user who is suffering as the developers are creating a perception that the buyer has to pay the tax by saying it will add burden.
Dilapidated buildings on the verge of collapse are a grim reality in Mumbai. Developers, as an incentive to owners of older buildings, offer additional area, money, and the promise of a new flat with a better amenities.
Whether the finance minister will succeed in getting the vested interests sitting on unsold inventory to lower prices is uncertain. For the current pricing is the result of the unwholesome business model adopted of these builders.
With PE investors exiting realty investments in an overpriced market and end-users demanding ready-to purchase property, Delhi builders may finally be willing to settle for less
The absence of overt speculation ensured that the developers could peg their pricing of homes more realistically
Poor regulatory laws push thousands of homebuyers at the mercy of developers, but increasingly the meek are pushing courts and regulators for justice. <br /><br />
Reasons? No tax, high rental yields and dirt cheap property.
With property prices escalating in Mumbai and DelhI, Indians, especially NRIs are looking at investing in the Middle East where distressed asset sales became the order of the day post the 2008 meltdown.
The Bill seeks to punish errant developers delaying possessions and other so-called irregularities. But the Bill is totally silent on the authorities and government officials who could be responsible for delaying projects by sitting on approvals.
Investors are snapping up property near a proposed $45 billion business zone in the Chinese boom town of Shenzhen, betting that the government's plans to further open its capital markets with a " mini-Hong Kong" will spur real estate values.
The Bill is a well-drafted one, but the success of it depends on its implementation and the ability to prosecute builders for their faulty practices.
Mumbai's property market has become more speculation-based and less about homes. Flats are being traded as investments, driving up prices inordinately.