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Amrapali Residents Can Now Get Water, Power Lines, All Amenities

Residents of Amrapali projects like Sapphire, Silicon City, Zodiac, and Leisure Park, who have moved into their new homes were struggling with basic amenities like power and water connections, fire safety and functional lifts for several years. But now these problems are planned to be fixed and a fresh tripartite agreement to be signed between the Noida or Greater Noida authorities, NBCC and the homebuyer.

This agreement will allow the completion certificates to be issued, which would, in turn, pave the way for all amenities to be provided to the societies. The societies where construction has otherwise been completed should get completion certificates from the Noida and Greater Noida authorities within a month.

Earlier this week the public sector construction giant, NBCC, to complete Amrapali’s projects, the Supreme Court even ordered completion certificates to be issued irrespective of the dues that Amrapali owes to the Noida and Greater Noida authorities. The water and electricity departments have been asked to provide the necessary connections.

Around 7,000 residents in multiple Amrapali projects are at present living without completion certificates.

Amrapali has handed over keys and no-objection certificates to them after they cleared all their dues. Even though it did not fully complete the buildings, leaving gaps in amenities like water supply, sewage treatment, fire safety, and lifts. One of the conditions of the completion certificate is that all amenities in a project must be in place.

“According to the Supreme Court order, residents already in possession of their flats but without completion and occupation certificates would be given the completion certificates after NBCC fills the existing gaps. A tripartite agreement between buyers, the authorities and NBCC would then be made,” the advocate representing a section of buyers of Sapphire Phase I at the Supreme Court.

July 29, 2019 / by / in
GST tweak : Make Up Real Estate Sector’s Budget Wishlist

The real estate sector is expecting the upcoming Interim Union Budget for 2019-20 after being through the various structural changes and demand pressures over the past two years to rationalise the Goods & Services Tax rates for convergence of stamp duties, further incentives for affordable housing and under-construction properties within the GST rates.

To make real estate investment trusts (REITs) more attractive for investors, experts are suggesting making it more tax-efficient for investors.

“REITs have the potential to enhance the supply of commercial real estate — an enabler for the employment ecosystem. For unit holders, the long-term capital gains holding period for REIT units should be brought down from 3 years to 1year,” said Shishir Baijal, chairman, Knight Frank India.

Most developers continue to reinforce a long pending demand of awarding industry status to the sector to contribute to the economy’s growth and support to job creation after given the sector’s linkages with other industries.

“Boosting farm incomes and adding job opportunities are the twin tests for Union Budget 2019-20. Real estate and construction industry fit into the Budget 2019-20 scheme as the second largest employer after agriculture, and contribute close to 10% of GDP. Alignment of GST and personal income tax so as to boost home ownership is a strategic option that government may well consider exercising,” said CREDAI national president Jaxay Shah.

Experts are now also seeking to re-finance NBFCs by raising their limits after given the liquidity pressure created by fears of defaults by realty developers and non-banking finance companies (NBFCs) following the IL&FS default in September 2018.

“For the industry at large, one of the most critical steps that this budget can take is to increase the finance limits for NBFCs. NBFCs constituted more than 50% developer finance in 2018 as against 30% in 2011. The government must revive the sector by pumping in more money into NBFCs which lend to developers,” said Anuj Puri, chairman, ANAROCK Property Consultants.

“A road map to execute the ‘infrastructure status’ accorded to the industry in the previous budget needs to be drawn. Further extension should be given for availing benefits falling under Sec. 8O-IBA for Affordable Housing Scheme under Housing For All. The government can also consider differential GST rate an for apartment value of more than Rs 7,000 per sq. ft,” said Ashish Puravankara, managing director, Puravankara.

Most developers are expecting an abolition of GST payable by the landowner in a Joint Development Agreement (JDA) and also the removal of tax on the unsold housing inventory.

January 29, 2019 / by / in , , , ,