Sat, Jun 27, 2015

MUMBAI MIRRORAHMEDABAD MIRRORPUNE MIRROR

No water, no power? Then sites cannot be released

By Kushala S, Bangalore Mirror Bureau | Jun 26, 2015, 04.00 AM IST

Buyers must be able to go in for immediate construction after registration of sites

Developers will be more accountable and buyers will get ready-for-construction plots

Ever looked forward to building your dream home on your very own plot, in that swanky layout? You probably have, you've also probably landed up only to find that the layout does not have water, power of even a basic sewage management system.

Welcome to layout hell.

But all that's set to change. Private layout developers can no longer release sites to the buyers without completing all necessary infrastructure work. In Bengaluru's murky realty market where property buyers who overlook due diligence procedures, are often taken for a ride, it's some comforting news. The planning authorities will change the rules that will make developers more accountable and buyers will get their plots in a ready-for-construction condition.

The state cabinet on Wednesday approved a proposal to amend a provision in the Karnataka Town and Country Planning Act (KTCP) to bring in stringent regulations for layout developers that will go a long way in protecting buyers' interests.

Section 17 of KTCP Act that deals with layout approvals will be tweaked. The end result of this change in the rule book would mean: developers of private layouts will have to complete all necessary infrastructure work like roads, water supply and sewerage lines, electricity connection, relinquishment of parks and open spaces to the planning authorities, only after which the site allotments will be allowed. The developer has to create the infrastructure in such a manner where buyers can go in for immediate construction after registration of sites.

Till now what used to happen is this: Once the developer completed the booking of plots by collecting a percentage of the cost from prospective buyers, he would carry out earthwork, mark sites, build basic roads and then begin the allotment process. The developers are allowed by the planning authorities (for instance, BDA for Bengaluru, BMRDA for rural Bengaluru, urban development authorities in other cities) to release sites in the ratio of 40, 30 and 30 (of the total bulk).

"With complaints about developers not complying with their commitment to develop infrastructure, we proposed to amend the KTCP Act and sent a proposal to the government. The cabinet approved it on Wednesday. Section 17 of the Act dealing with layout approvals will become stricter and the end-user will be benefitted.

Unless the layout is not completely developed, the developer will not be permitted to allot sites. All the sites will be released in one go, unlike the existing process of the 40, 30, 30 ratio," town planning department director, S B Honnur told Bangalore Mirror.
With fraudulent realty companies mushrooming in the city's property market, this comes as a welcome move.

The amendment will be brought in the form of a bill which will go before the forthcoming Legislature session at Belagavi, starting next week.

Gen Y techies who invested in Bangalore 5 years ago now finding it difficult to service their home loans

BANGALORE: Economic slowdown has cast a shadow on Bangalore's housing market, with the rising cost of living and poor salary increments forcing an increasing number of IT professionals in the city to put their upscale homes on sale.
Gen Y techies, who had invested in apartments, row houses and bungalows in Bangalore — India's IT capital, some 15 years ago, are now finding it difficult to service their expensive home loans or even maintain these houses amid falling rental yields. Resale inventory in this housing segment has grown 30-35% over the last six months, according to property portal CommonFloor.com.


Six of every 10 such properties are owned by IT executives, up from around four about two years ago, it said. "The booming real estate market was a major incentive for techies, but now that salaries are not going any higher, inflation is getting the better of these people, they are feeling the heat and the burden of hefty EMIs," said Mohandas Pai, the former CFO and head of HR at Infosys, who has seen the IT industry grow in Bangalore over the last 20 years from close quarters.

"Now they are eager to get rid of any excess property they possess while they can still getting a good deal," added Pai, who is chairman of Manipal Global Education. Since 2001, the city has seen an addition of 350,000 apartments, about 8% of which are now up for sale. During this period, about 45,000 villas and penthouses were added to the city and 8% of these are now in the resale market.

"These properties would fetch a huge premium now, running into a crore or more. Why not sell them off," said Kalpana Murthy, associate director — residential services at Cushman & Wakefield, a property consultant.

Bangalore's realty sector had witnessed steady investment by salaried IT professionals till a few years ago, with well-paying jobs making even a second or third home affordable for some. Around this time, real estate prices were low and the return expectation high, which helped push up rentals. That demand, however, began to peter off as recession set in, hitting company bottom lines and employees' salaries. Salary increments in the IT sector this year have been in the 6-8% range, compared with a minimum of 15% between 2007 and 2010. Adding to the gloom is IT industry body Nasscom's forecast that the domestic IT sector could generate 50,000 less jobs this year, down 17% compared with last year.

"Looking at the appraisals for the year, I stalled my shifting plans, which would only increase my expenses," said 35-year-old Ankit Jain. The Accenture employee recently sold his 1,500 sq ft, three-bedroom apartment on Sarjapur Road, which he had bought in 2009, for twice the purchase price. But not everyone is as lucky. With several such professionals in the market to sell, and builders launching new projects every month, Bangalore is facing an oversupply of sorts while demand has been dropping steadily. "The market is certainly slow and sellers are finding it difficult to find buyers.

The slowing economy and rising inflation is making matters worse," said Srinivas Reddy NS, senior manger — research at Jones Lang LaSalle, another property consultant. Home sales across the country have been slipping over the last few quarters. According to property research firm Liases Foras, new home sales in Bangalore in the June quarter were down 23% from a year ago. Another techie, Shameer VK, 35, who works with Cisco and lives in a 2,000 sq ft apartment in Marathalli, said his home is "too lavish", given the current economic scenario.

"I bought my apartment for close to Rs 50 lakh in 2008, and I pay an EMI of Rs 39,500. A similar house in the same project now goes for Rs1.3 crore," Shameer said, adding that if he is able to find a buyer for his flat, the money will help him pay off his debt and also buy a smaller property in the neighbourhood. The housing resale market in Bangalore is dominated by peripheral localities in the east and south of the city, which are close to major IT hubs.

According to Sumit Jain, chief executive of CommonFloor.com on Sarjapur Road, which is equidistant from Whitefield and Electronic City, more than 11% of all properties are available for resale. At Whitefield and Bannerghatta, it is 10.9% and 6.9%, respectively. Marathalli has 4.9% while JP Nagar has 4.6%. With the rupee having fallen sharply against the dollar, experts say it could be an opportunity for non-resident Indians who are repatriating dollars.

It was a no brainer for people who check the basics of property price justification - that 40% had crept into Bangalore properties across ONLY to its notional value. It wasnt real value. Real value is always 10-30% more than the government published guidance value for any location. There was just no sense one could attach to the price rise since 2010. Most people dont attach any impor .. 

Read more at:
http://economictimes.indiatimes.comhttp://economictimes.indiatimes.com/opinions/22304732.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Buyer to get Rs.52 lakh over delay in getting flat

Buyer to get Rs.52 lakh over delay in getting flat

A flat buyer will get Rs.52 lakh as cost from a builder in Kochi, Kerala, for not handing over on schedule the possession of a flat that the man had booked and had paid Rs.71 lakh as its price.

 

The decks were cleared for Jayan to get Rs.52 lakh as the Supreme Court's vacation bench of Justice Prafulla C. Pant and Justice Amitava Roy dismissed the builder's plea against the National Consumer Dispute Redressal Commission's order directing him to pay a punitive cost of Rs.52 lakh at the rate of 12 percent per annum from March 2009.

 

The court dismissed the builder's plea, observing that it was just interest on the amount the buyer paid for the flat he has not got till date.

 

Senior counsel Abhishek Manu Singhvi, appearing for the petitioner builder, argued that the NCDRC awarding Rs.52 lakh amounted to rewriting the terms of the contract, which according to the earlier verdict of the apex court was not permissible.

 

Singhvi said the NCDRC had no jurisdiction to pass such an order and the cost imposed was 74 percent of the total cost of the flat coupled with other penalties.

 

He said the builder was willing to hand over possession of the flat.

 

The unimpressed court declined to accept any of the pleas and dismissed the petition by the builder.

 

In another matter, where the flat owner has not been handed over possession, the court observed: "You take money from the flat buyer. They invest their hard-earned money. You don't give them flat and they suffer."

http://www.moneylife.in/article/buyer-to-get-rs52-lakh-over-delay-in-getting-flat/42050.html

Luxury dream homes in Bangalore might just sweep you off your feet!

Luxury dream homes in Bangalore might just sweep you off your feet!

by May 29, 2015

Mumbai may be the financial capital of India but Bangalore is the technological hub of the country. With IT companies booming and HNI clients making the city their new paradise, Bangalore is seeing a rise in the luxury housing segment.

Lately the city has witnessed a launch of 35 new luxury residential projects as compared to 18 projects in 2013.

Certain places in Bangalore have come to be the luxury dream home centres for many. The South neighbourhoods in prime cities have always been known to be the most posh areas locating HNI, NRI clients as well as celebrities. This legend is typically been carried forward even in Bangalore with areas like Whitefield (West), JP Nagar, Kanakpura Road, Hosur Road, Sarjapur Road and Bannerghatta Road in the south occupying the most number of residential project developments.

The trend has been such that areas closer to the airport and the forthcoming metro line are witnessing more footfalls. Examples of JP Nagar and Kanakpura Road can be cited here where the sale of properties is impelled by the upcoming metro line. On the other hand, areas in North Bangalore have attracted home buyers with their proximity to the airport.

Karle's IT Park and Embassy's Manyata Tech Park have boosted the tech developments in the area, adding to the availability of Special Economic Zones. These zones are known to administer better trade and investment opportunities along with catering to employment needs.

As obvious as it is, the globally competitive nature of the city's ambience spurs the corporate, HNIs and highly professional individuals to make this city their new home and work destination. 

The high-end home designs inspired by US and Singapore style apartments are in vogue in Bangalore besides the technical and trade facilities that the city has to offer. Nothing short of the lavish interiors these luxury homes are fit to be featured in lifestyle magazines. In short, these premier residences are something that could be an easy-connect with global luxury housing brands.

Plush golf gardens sprawling on several acres of land, infinity pools, grocery shopping options that would suit the taste of globe trotters, gymnasiums with equipment of international standards, conference centres, schools, medical aids or even statement bathrooms and kitchens and designer decor, they have it all. These luxury apartments are bursting with the imperial lifestyle that kings would boast of, had it been the 17th century. Or probably one they could never imagine!

Central Bangalore enjoys the undivided attention of high-end clients as the luxury real estate is a prominent feature here. This area consists of some of the most prestigious and pricey addresses with residences on the Vittal Mallya Road costing between Rs. 27,000-Rs.30,000 per sq. ft.

Again, while Richmond Road residences are offered at anything between Rs.42,000 - Rs. 45,000 per sq.ft., Sankey Road properties might offer some relief at Rs. 30,000 a sq. ft.

Imported quality construction and décor items are used in these spacious luxury homes to make them stand a class apart from their competitors. The swanky, coveted addresses too enjoy a neighbourhood away from the hustling-bustling of the usual city life, residing the who's who of the town.