To keep you abreast of the recent happenings in the world of real estate, here’s our bulletin for the last week of March 2018.
Bangalore
Property tax arrears touch Rs 2,265 Crore
The Bangalore Bruhat Mahanagar Palike (BBMP) has collected about Rs 2,100 Crore, including arrears in some cases, like property tax. The set target, however, for the current fiscal was Rs 2,600 Crore. Interestingly, as many as 1.79 Lakh properties are yet to pay taxes ranging from Rs 10,000 to Rs 1 Crore. Further, there are 105 properties whose pending tax payment exceeds Rs 1 Crore each.
That’s not all! Rs 170 Crore or more is also expected from 109 high-value properties. As per the BBMP’s total station survey, these properties had been undervalued, and thus they will have to pay the penalty as well.
7 BDA complexes to be redeveloped
The Bangalore Development Authority (BDA) has selected a joint venture of the Embassy Group and Maverick Holdings & Investments to redevelop its Indira Nagar shopping complex under the public-private partnership (PPP) model. Further, six other BDA shopping complexes will also be redeveloped. They are in Koramangala, Sadashivanagar, RT Nagar, HSR Layout, Vijayanagar, and Austin Town. After redevelopment, the revenue potential of these seven complexes is likely to go up from Rs 3.57 Crore to Rs 38.89 Crore.
As per the PPP model, the commercial space will be leased out to private partners for 30 years while the ownership of the complex will remain with the BDA.
On the commercial front…
- The Embassy Group will be investing about Rs 2,000 Crore to develop nearly 6 million sq. ft. commercial space at Embassy TechVillage in the city. This will be the next phase of construction in the IT park, encompassing a development area of 12 million sq. ft.
- In another major deal, Tata Consultancy Services (TCS) has picked up 1 million sq. ft. commercial space on lease at the International Tech Park Bangalore.
Residential launches slip 50% across top seven cities in 2017
The year 2017 was marked by reduced launches and subdued sales. A recent report by ANAROCK Property Consultants suggests that new launches across top seven property markets witnessed an on-year decline of nearly 50%.
In terms of sales, Chennai recorded the highest dip with 26%, while Bangalore recorded the lowest (2%).
On the positive side, overall unsold inventory decreased by 10% from 8.04 Lakh units in Q4 2016 to 7.27 Lakh units by Q4 2017.
Hyderabad
HMDA serves notice to Avani Meadows
The Hyderabad Metropolitan Development Authority has served a show-cause notice on Avani Meadows Private Ltd. for cancellation of the draft layout approval given by it.
The notice was issued following a complaint filed by the Lakshmipuram Plot Owners’ Welfare Association, asking the firm to explain allegations of misrepresentation of facts about land disputes while obtaining the draft layout approval.
Hyderabad to have a police station to tackle illegal constructions
A special police station will come up in the city to crack down on unauthorised constructions and civic violations. A first-of-its-kind, it will be a part of the Greater Hyderabad Municipal Corporation-proposed Enforcement, Vigilance and Disaster Management Cell, and will be housed at Buddha Bhavan in Secunderabad.
As per estimates, out of the total 22 lakh houses within GHMC limits, over 50% have deviations from the sanctioned building plans.
Telangana RERA panel in three months
The state government will constitute a Real Estate Regulatory Authority (RERA) advisory committee in the next three months for effective implementation of RERA.
In addition to the members of the civil society, lawyers, builders, architects, and town planning experts will form part of the advisory panel.
The government will take the help of agencies that overlooked the implementation of RERA in Maharashtra to replicate the model in the state.
Maharashtra
RERA creates a Rs 10,000 Crore business for insurance companies
RERA has made it compulsory for developers to get title insurance for all projects, opening a new segment of over Rs 10,000 Crore for insurance companies. HDFC Ergo and SBI General are working on launching title insurance policy.
As per RERA, it is mandatory for developers to provide a written affidavit to buyers stating that the legal title to the land contains legitimate documents of ownership.
This policy covers buyers of property against loss and settlement costs.
Updates on Bombay HC orders
- The court has directed Rohan Lifespaces to list the preventive steps it will take to ensure its under-construction high-rise in South Mumbai did not damage adjoining buildings, including the bungalow of jurist Soli Sorabjee.
- The landlord of Bhatia Society (A century-old four-storeyed stone building) was directed to deposit Rs 60 Lakh towards restoration costs after his tenants accused him of illegally digging a portion of the structure’s foundation and adding a mezzanine.
- The court also appointed a two-member committee to check allegations of ecological damage by developers of Nahar Amrit Shakti township in Chandivli. This has come after a PIL filed by a local resident who alleged there was no environmental clearance for the project and a hillock was damaged by the builder.
PCMC issues notice to one lakh owners for property tax dues
The Pimpri Chinchwad Municipal Corporation (PCMC) is focusing on commercial establishments for recovery of property tax and penalty arrears.
For the same, PCMC has issued notices to 1.13 Lakh owners of commercial as well as residential establishments for the recovery of property tax and penalty arrears.
Updates on Pradhan Mantri Awas Yojana (PMAY)
Data from the websites of the Urban Affairs and Rural Development Ministry has revealed some shocking numbers.
- Out of the total 40.6 Lakh houses targeted, merely 3 Lakh have been constructed while 18 Lakh houses are under construction.
- The PMAY rural depicts a slightly better picture. Out of the total 95.4 Lakh targeted, about 28.8 Lakh houses have been completed.
It will be interesting to see how the ruling government will achieve its ambitious target of ‘Housing for All by 2022’.