Revision as of 14:37, 14 September 2017

Buying and selling, 2017

Economics of buying vs. renting

See graphic.

Economics of buying and selling, city-wise, 2017; The Times of India, April 8, 2017

House rents

Change in rents, 2012-16

Percentage change in index for housing rentals, 2012-16

HOUSE RENTS HAVE RISEN THE MOST IN DELHI, LEAST IN UTTARAKHAND, Sep 17 2016 : The Times of India

Recently released data on consumer prices indicates that housing cost (a proxy for rent in CPI) recorded the highest increase in Delhi, while Uttarakhand saw the minimum rise among major states. This data is for the period between 2012, the base year of the current index, and August 2016, the month for which the latest data is available

See graphic.

The price of a 1300 sft flat in Indian metros and other countries; and
ii) The rental yield in India and other countries; The Times of India, June 13, 2017

Luxury homes

Bangalore No. 1 market in India for luxury homes

While Bangalore reports sales of close to 100 luxury units — including villas — on a quarterly basis, Mumbai and NCR, in comparison, see only around a dozen such sales.

Anshul Dhamija, TNN | Apr 20, 2014 The Times of India

BANGALORE: When it comes to luxury homes — units priced above Rs 5 crore — Bangalore is setting benchmarks to emerge as the country's top luxury home market, says a report by JLL India, an international property consultancy firm.

Quality of construction, design, ventilation, floor-to- ceiling height, amenities, floor plans, building elevation and configuration aspects are among the factors fuelling Bangalore's rise to the top, the report says.

Most importantly, pricing of luxury residential properties in the country's IT capital is seen to be far more reasonable and realistic than Mumbai and NCR, says JLL's report, shared exclusively with TOI.

"Luxury properties in Bangalore are 20% to 30% cheaper. While luxury apartments that cost between Rs 6 crore and Rs 30 crore may seem exorbitant, they are in fact very reasonable when compared to the rates going in premium locations of established cities like Delhi and Mumbai," notes Om Ahuja, CEO-residential services, JLL India.

Citing research data, Ahuja adds: "A luxury apartment in Indiranagar or Koramangala is still an attainable reality with prices ranging from Rs 9,000 to Rs 12,000 per square foot. No other premium locations of other major Indian cities offer such prices in the luxury segment."

While Bangalore reports sales of close to 100 luxury units — including villas — on a quarterly basis, Mumbai and NCR, in comparison, see only around a dozen such sales.

Data shared by the consultancy firm LJ Hooker shows that Bangalore has around 5,400 luxury units under various stages of construction and planning.

After Mumbai and NCR, Bangalore is the third largest market for luxury property sales and product offerings. It is also the third largest real estate investment hub for high net-worth individuals (HNIs), but tops the list in terms of investments from NRIs looking at settling down in India.

While much of the city's luxury homes demand is fuelled by millionaires from the IT/ ITeS sectors, the demand is also being driven by Kolkata and Chennai-based HNIs. JLL estimates Bangalore to have over 10,000 dollar millionaires.

In terms of product, JLL reported that luxury residential offerings in Mumbai and NCR fall more or less in the vanilla category when compared to products in Bangalore. "In Mumbai and NCR, location aspects such as sea view or PIN code tend to define the flair and profile of a property far more than the positioning of the product in terms of luxury and design parameters," says Ahuja.

Demand across all metros for luxury residential products was subdued over three to four financial quarters, but has picked up in the past 60 days, say analysts tracking the real estate sector.

New Integrated Licencing Policy (NILP), 2015

The Times of India, Oct 24 2015

Manvir Saini

Haryana policy gives big housing a push 

The Haryana government has reduced the minimum land requirement to build townships from 100 acres to 25 in its new integrated licencing policy (NILP), which it unveiled. The state expects the NILP to help energise the real estate market that has been going through a prolonged slump, particularly in NCR. The policy is applicable to high and hyper potential areas in NCR and the state capital region (SCR).

The lowering of the mi nimum land quantum for large housing projects to 25 acres also means acquisitions of this scale won't attract tough clauses of the Land Acquisition, Rehabilitation and Resettlement Act, which is applicable for acquisitions above 50 acres.

Only 12 housing project licences have been issued since the Manohar Lal Khattar-led BJP government took the reins of the Haryana government in October 2014.But the investment climate alone is not to be blamed for this. The state stopped issuing licences to builders in September 2014 when the model code of conduct for the assembly polls came into effect. The new government only resumed giving out housing licences in June.

The NILP will cover Gurgaon and Manesar, Faridabad, Ballabgarh, Sohna, So nipat, Kundli and Panchkula. The government expects it to generate a revenue of Rs 1.25 lakh crore. While unveiling the policy in Chandigarh, chief minister Khattar said he was hopeful that 2 lakh dwelling units under the affordable housing scheme would be built by 2020.

Besides bringing down the minimum area requirement for obtaining the licence, the NILP also plugs an illegal practice of developers signing memoranda of understanding (MoU) to fulfil the 100-acre cap. There had been instances in the past when builders have inked MoUs with landowners and apply for a licence.

Now builders, who want to use farmers' land for their projects, will have to sign a transferable development rights (TDR) agreement.“This will ensure that far mers or landowners will get the market price from the builder for their land. The government will be a facilitator as the custodian of farmers' interests. The TDR certificate will be valid for two years from the date of issuance,“ said Khattar.

Occupancy costs

NOIDA, The market rates of apartments per sq. ft. in 2011 and 2016; and circle rates 2016; Graphic courtesy: The Times of India, June 29, 2016

India and the world: Annual Rental Yield, Rental income as percentage of purchase price; Graphic courtesy: The Times of India

Realty index: 2007-2009

Unsold stock of real estate in India, 2015-Mar 2016; Graphic courtesy: The Times of India, June 20, 2016

Times of India

2013, NHB Residex

Office space: rents and occupancy costs, March 2013

‘CP world’s fifth costliest office mkt’

TIMES NEWS NETWORK

The Times of India

Delhi

Despite weakening demand for office space Connaught Place remains the fifth most expensive office market in the world.

In property consultant CBRE’s semi-annual Prime Office Occupancy Costs survey, CP has retained its earlier ranking in the list of the world’s 50 most expensive office markets. The latest survey provides data on office rents and occupancy costs as of March 2013 across 133 countries.

“Though demand for office space has reduced, occupancy costs remain high, especially in Connaught Place, due to limited supply in the near future,” said Anshuman Magazine, chairman and managing director, CBRE.

Downturn, around 2014

2016: Circle rates lowered

The Times of India, June 3, 2016

These are hard times for the real estate industry in NCR. One factor that has gnawed away at interest in buying or selling property is the unreasonable circle rates. While Gurgaon proposed a 15% cut [May 2016], circle rates there, and in most of Noida, are higher than the market rates, virtually slowing transactions to a trickle.

The property market in NCR is at its lowest ebb.Prices have either plateaued out or fallen over the past couple of years. Like any bear run, this ought to have got buyers looking for long-term returns interested. But that hasn't happened. As much as the trust-deficit has spooked in vestors, a devil hiding in the detail has further queered the sales pitch. It's called the circle rate.

By definition, circle rate is the minimum value at which a plot, house, apartment or commercial property can be sold.The rate is decided by a state's revenue department in consonance with market rates. But in hot property markets like Gurgaon and Noida, the circle rate has stopped keeping in touch with the market rate. So, while market rates depreciated due to bad buying sentiment, circle rates didn't.

What this created is an environment in which neither buyer nor seller is interested in making a transaction. Why?

Say an apartment's market price is Rs 1crore but its value, according to the circle rate, is Rs 1.5 crore. It means both the stamp duty the buyer has to pay to register the flat and the tax component of the seller will be calculated on Rs 1.5 crore, the circle rate. It's a transaction in which both parties lose.

Acknowledging this, the Gurgaon administration recently made the unprecedented proposal of cutting circle rates by a steep 15% for the 2016-17 fiscal year. The industry hopes the Delhi and UP governments will follow suit.Gurgaon divisional commissioner D Suresh said the proposal reflected the reality.

Unlike in Gurgaon, where circle rates were not revised for the last two years, Noida continued to raise them despite the gloom. Updesh Bharadwaj, a resident of Sector 72, owns a shop in a mall in Sector 18 that he wants to sell. “The market price of the shop is Rs 1.5 crore but it's Rs 2.5 crore as per the circle rate. I have been looking for a buyer for two years. But no one is interested because of the huge gap in rates,“ he said.

Gurgaon

And the gap in office realestate occupancy cost between central business districts (CBDs) such as Connaught Place and suburbs such as Gurgaon (ranked 72nd) stays wide.

Mumbai:

In Mumbai the occupancy costs in Nariman Point, the country’s first planned CBD, have reduced further. In the CBRE survey, Nariman Point dropped to 26th position at $90 per sq ft per annum. In December 2012, it had ranked 25th.

But the Bandra-Kurla Complex (BKC) retained its earlier ranking (11th) among expensive office markets, CBRE said.

CBRE analysts said the Mumbai CBD — including the micro markets of Nariman Point, Fort and Cuffe Parade — had seen office space absorption of only 8,000 to 10,000 sq ft during the quarter. Office rental values in these micro markets declined 3-4% sequentially in January-March, they said.

2014: NCR, Mumbai

The Times of India

Dec 31 2014

‘CP 6th costliest office location in world’

BKC and Nariman Point are among the top 50 costliest office spaces globally, according to CBRE’s survey released in December, 2014. BKC, which is the city’s alternative business district, retained its 16th rank, while Nariman Point is ranked 32nd on the top 50 list.

At nearly $160 per sq ft per annum, Delhi’s Central Business District (CBD) of Connaught Place bagged the sixth slot.

“London’s West End remained the world’s highestpriced office market, but Asia continued to dominate the world’s most expensive office locations, accounting for three of the top five markets,” said the CBRE report.

London West End’s overall prime occupancy costs of $274 per sq ft per year topped the “most expensive” list.

Hong Kong Central followed with total prime occupancy costs of $251 per sq ft, Beij ing’s Finance Street ($198 per sq ft), Beijing’s CBD ($189 per sq ft) and Moscow ($165 per sq ft) rounded out the top five.

“Although New Delhi’s Connaught Place moved up two places to the sixth spot on the global top 10 rankings over the first quarter of 2014, annual occupancy costs here remained stable because of rupee appreciation since the first quarter,“ said CBRE south Asia CMD Anshuman Magazine. Annual office occupancy costs in Gurgaon remained stable, while that of Nariman Point dropped by about 2% and BKC by about 6%. Bangalore’s CBD, which saw a nearly 9% drop, was among the top five global prime office markets to witness a decrease in yearly occupancy costs.

Global prime office occupancy costs rose 2.5% yearover-year, led by the Americas (up 4.1%) and Asia Pacific (up 2.8%).

2016: Connaught Place, BandraKurla, Nariman Point most expensive

The Times of India, Jun 16, 2016

The cost of owning residencial real estate, city-wise, as on August 15, 2016; Graphic courtesy: The Times of India, August 15, 2016

CP world's 7th costliest office space 

Connaught Place has slipped one notch to become the world's seventh most costliest office destination, according to property consultant CBRE. Mumbai's BandraKurla Complex (BKC) is at the 19th position and Nariman Point at 34th, according to CBRE Research's Global Prime Office Occupancy Costs bi-annual survey .

“With annual occupancy cost of USD 149.71 per sq ft, New Delhi's Central Business District (CBD) of Connaught Place ranks as the seventh most expensive prime office market in the world,“ CBRE said in a statement.

Hong Kong (Central) became the highest-priced office market with an overall prime occupancy costs of USD 290 per sq ft per annum, followed by LondonCentral (West End) with annual occupancy cost of USD 262.29.

2017/Office rents: Mumbai, Delhi, Bengaluru among top 6, worldwide

Office rents in Mumbai, Delhi, Bengaluru among top 6 globally: Study, Aug 29, 2017: The Times of India

HIGHLIGHTS

Office rents in Mumbai, Delhi, Bengaluru among top 6 globally, according to a study

Global price index that compares rental values of prime office spaces across 20 international markets rose by 1.2 per cent in the quarter

Bengaluru's office rents grew by 4 per cent- highest among key CBDs in India

Healthy surge in rentals across key business districts reinstated the growing prominence of Indian metrosHealthy surge in rentals across key business districts reinstated the growing prominence of Indian metros

MUMBAI: Healthy surge in rentals across key business districts reinstated the growing prominence of Indian metros including Mumbai, Bengaluru and New Delhi on the global map of high-rent yielding commercial spaces during April-June 2017, says Knight Frank in a recent study.

According to the report, the global price index that compares rental values of prime office spaces across 20 international markets rose by 1.2 per cent in the quarter.

"Prime business districts in the three Indian metros have seen robust rental growth courtesy strong demand and limited vacancies. This scenario is expected to remain for a year owing to a supply crunch of new office space," Knight Frank India Chief Economist and National Director-Research Samantak Das said.

As per the report, sustained interest from the IT/ITes sector pushed rents in Bengaluru's business district by four per cent- the highest among other key CBDs in India.

Other established business districts such as the Connaught Place in Delhi also saw a 2.2 per cent climb in rentals, courtesy a lull in supply of new office spaces and dwindling vacancies, it said.

The Bandra Kurla Complex in Mumbai, recorded a quarter-on-quarter increase of 2 per cent in rents in April-June 2017. Vacancy levels here, however, got a boost with a fresh office supply of around 530,000 sqft in the last quarter.

"Despite the global pressures on the IT/ITes sector triggered by automation and limitation in demand for business the technology-driven Bengaluru market has performed well and it expected to do even better. But prime office assets in Mumbai and Delhi are likely to see a slower growth trajectory having already scaled high-rental values," he added. According to it, Phnom Penh in Cambodia topped the chart this quarter with 4.2 per cent increase, Bangkok (Thailand) the erstwhile topper saw its first decline this quarter in close to three years.

Real Estate Investment Trusts (REIT)

Blackstone likely to be India's first listed on REIT

What are Real Estate Investment Trusts?

Boby Kurian & Reeba Zachariah, Blackstone readies India REIT listing, Sep 19 2016 : The Times of India

REITs are listed trusts holding income generating properties, earnings from which are distributed to shareholders. Market regulator Sebi came out with REIT guidelines [in 2014], helping real estate developers list their rent-yielding assets, and also providing large and small stock market investors with an inflation indexed product.

The world's largest private equity manager Blackstone Group, which is also the most prolific investor in Indian commercial properties, is finalizing plans to raise Rs 4,000 crore (about $600 million), through a listing of Real Estate Investment Trust (REIT) on the domestic stock exchanges, people directly familiar with the matter said. This will perhaps be India's first REIT listing and a test case for global investors who have poured big bucks into the country's rent-yielding commercial assets, especially tenanted office spaces.

Blackstone, through its joint ventures with Bangalore-based Embassy Group and Pune's Panchshil, is on the road to build 50 million sqft tenanted office buildings--of which 30 million are already leased--across top Indian cities. It could target a possible listing during the first quarter next calendar, though a decision on timing would be taken only after filing for permission with Sebi.

RERA at the Centre, and in Haryana and UP

Bagish Jha, Shubhra Pant & Sharmila Bhowmick|Most ongoing projects in NCR will be out of Rera ambit|Jul 27 2017 : The Times of India (Delhi)

RERA at the Centre, and in Haryana and UP , as in July 2017
From The Times of India

Real Estate (Regulation & Development) Act

2016: Some states dilute provisions, give builders exemptions

Dipak Dash, UP, Gujarat dilute new realty law, Nov 04 2016 : The Times of India

Make It Builder-Friendly By Giving Exemptions To Ongoing Projects

States led by UP and Gujarat have begun diluting provisions of the Real Estate (Regulation & Development) Act, which notify the rules for regulation of the sector. Both states have let off most ongoing real estate projects which have been delayed for long and remain a worry for thousands of home buyers awaiting delivery .

While UP has come up with four exemptions to exclude incomplete projects from the category of “ongoing projects“, Gujarat has exempted all projects launched before notification of the rules. This means such projects won't have to be registered with the real estate regulator in these states.

On the contrary , the law enacted by the Centre earlier this year provides for manda tory registration of all “ongoing projects“ that have not received completion certificate. “The central law, which is binding on all states, does not differentiate between ongoing and future projects for registration. However, it provides for registration of incomplete projects within three months from the commencement of the Act,“ said an official here.

The norms notified by UP excluded projects in which services had been handed over to the local authority for maintenance, common areas and facilities that had been handed over to RWAs for maintenance and where development work had been completed and sale and lease deeds of 60% houses execu ted. “This dilutes norms laid down in the law and will help builders avoid the mandatory regulatory provisions,“ the central government official said.

Defending their move, a Gujarat government official said, “We have notified the rules primarily for setting up the regulator ahead of the October 31 deadline. Once the operative part of the law comes into effect, we may revisit the norms“.

But central government sources said states must notify specific rules in compliance with the law and it wouldn't take not more than a couple of days to make all provisions operative.

On its part, the Uttar Pradesh government has also provided a handle for developers to retain some land in their projects under the guise of commercial activity rather than hand over such land to house owners.

While the central law clearly says that all community and commercial facilities in a project will be treated as common areas, rules notified by UP says, “Community and commercial facilities shall include only those facilities, which have been provided as common areas.“

2017: States dilute rules

Dipak Dash, States & UTs dilute RERA to favour realtors, May 1, 2017: The Times of India

Dilution of rules on real estate, state-wise; Dipak Dash, States & UTs dilute RERA to favour realtors, May 1, 2017: The Times of India

The Union housing ministry may claim that implementation of the real estate regulation law, popularly called RERA, will usher in a new era for home buyers, but the rules put forward by states have diluted many provisions, keeping most of the ongoing projects outside the ambit of the law that would come into effect.

States such as Odisha and Bihar have notified rules that are completely in sync with the one notified by the Union housing and poverty alleviation ministry . But in contrast, Haryana's draft rules, notified last week, have completely left out disclosures by builders on the sanctioned plan, layout and specifications at the time of booking with all subsequent changes till date.“This omission will give legal colour to all unilateral changes done by builders and will give them an escape route to avoid paying compensation to home buyers,“ said Abhay Upadhyay , president of Fight for RERA, the nationwide home buyers' body which campaigned for the law.

Similarly , in Maharashtra, a provision has been included to allow builders to ta ke out or divest from a project after occupancy certificate has been issued. This means, the builder can pull out its entire investment before completion of common areas, facilities and amenities.

In UP, the norms related to compounding of offences have been diluted as no specific amount has been mentioned. “There is provision for `up to' (a certain amount), which means it may even be zero. This will encourage corruption as quantum of money to be paid will be at the discretion of the authority,“ Upadhyay said.

Even the urban development ministry has allowed relaxation in Delhi, where rules specify that promoters need to provide details of only those court cases which have been disposed of during the last five years. This is despite the housing ministry clearly stating that builders need to provide details of all pending cases.

Till Saturday , 13 states and Union territories had notified their final rules. “With many states intentionally keeping most of the ongoing projects out of RERA's coverage, there will be little relief for lakhs of home buyers,“ Upadhyay said.

Real Estate Regulation Law: 10% interest rate for delayed housing projects

Prabhakar Sinha, RERA pushes for 10% interest clause, May 5, 2017: The Times of India

No Registration Of Project Unless Builder Agrees To Pay Penalty At This Rate

Buyers of delayed housing projects will get interest on the invested amount for the delay period at the Real Estate Regulatory Authority's (RERA) prescribed rate as against Rs 5 per sq feet to Rs 10 per sq feet contracted in the sales agreement, said chairman of Madhya Pradesh RERA Anthony de Sa.RERA's prescribed rate comes out to be 10% at present.

Meanwhile, developers have not been barred from advertising and marketing existing projects, said regulators and officials of MP, Punjab, Haryana and Delhi. Dispelling builders' doubts, officials said they need to apply for registration for ongoing projects only by July 31.

Additional chief secretary of housing urban development, Punjab, Vini Mahajan, who has also been appointed as the interim regulatory authority under RERA, while addressing a conference organised by FICCI, clarified that the existing projects need not wait for registration to advertise. They can continue all their activities as usual. However, those projects for which application for registration is not made even by July 31 to the regulatory authority cannot market their projects. “So far, 14 states and UTs have implemented this law. There are 14 more states which are in process of notifying the rules. We hope that they will do it soon,“ said joint secretary of housing ministry Rajiv Ranjan Mishra at the FICCI conference.

Anthony de Sa said that delayed ongoing housing projects will be registered with RERA only if the deve loper is ready to pay the buyer interest at the authority's prescribed rate, which is 2 percentage points above SBI's MCLR (marginal cost of fund based lending rate), and not the contractual rates of Rs 5 per sq ft to Rs 10 per sq ft which builders had accepted to pay when the sales agreement was signed.

At present, as SBI's MCLR is 8%, developers will have to pay 10% interest on the paid amount to the buyers. At the same time, buyers will also pay the same interest at 10% on delayed pay ment of their dues and not the penal rates of 12% to 18% as mentioned in the sales agreement.

Member of RERA Haryana committee and chief town planner of Haryana government Dilbag Singh Sihag, who is entrusted with the responsibility of finalising the RERA Rules for the state, said justice demands for the same interest rate to be paid by developers as they are charging buyers on delayed payment on outstanding dues.

Normally , developers charge a high rate of 12% to 18% while they pay only Rs 5 per sq feet to Rs 10 per sq feet on a project which costs Rs 4,000 to Rs 5,000 per sq feet. Sihag said this mismatch can be resolved by asking both parties to pay the RERA prescribed rates. He, however, added that no final view has been taken so far.

Mahajan said that existing buyers will get respite under RERA, clarifying that the authority is bound by the act and rules while taking the decision.

So, it can only enforce the contract signed between buyers and developers in light of RERA rules, which cannot go beyond the act.

Developers of delayed ongoing projects will get one more chance to regularize them. Regulators said that while registering ongoing projects, developers can set their own deadline to complete them. The deadline, however, should be reasonable. Anthony de Sa said that if a project was launched eight years back and the developer returns for registration seeking another four years for completion, it cannot be granted. There is no hard or fast rule to fix the deadline, which will depend on the existing condition and stage of implementation of the project.

But once the developer has given the deadline to complete the project and is unable to meet it, the regulator will take a very harsh view -he will either have to return the money to the buyers with interest or face consequences, including even a jail term, said Sihag.

RERA will help facilitate completion of projects so that all buyers can be satisfied. Only if developers are unable to achieve this goal will the regulators take stern action.

RERA compliance: a checklist

Ravi Kumar Diwaker | Magicbricks|4 ways to check if your property is regulator compliant|Jul 28, 2017: Times of India

The Real Estate (Regulation and Development) Act, 2016 (RERA) came into force on May 1, 2017 in the entire country. Since then there has been confusion and buyers find it difficult to make a decision. Many buyers are baffled on how to ascertain if their projects are RERA-compliant or not.

One such buyer Baladhitya wonders, "Will RERA bring any hope for home buyers? I am looking for properties for my own use, should I wait for some more time?"

On May 1, 2017 Maharashtra notified the Act. The state launched its website and uploaded all relevant details as per the state's RERA rules. The law mandates that once a project is registered, the developer will have to upload project details on the RERA website and provide updates on construction progress, commencement, occupation and other certificates before the flats are handed over to buyers.

"The situation is one where the positive aspects are apparent, and yet, there is an element of 'wait and watch' on the part of both home seekers as well as developers. RERA is a reality and has to be accepted. For stakeholders in real estate, the post-RERA necessary changes are being implemented. These are early days and we should see things firming up in the next few weeks," says Dr Niranjan Hiranandani, co-founder & chairman, Hiranandani Group.

If you are a confused buyer and want to know whether your project is RERA compliant or not then you can check the following before you park your hard-earned money.

Legal Title

You need to check that your developer has the legal title of the land on which the development is proposed, or has legally valid documents with authentication of the title if such a land is owned by another person. RERA has done away with the age-old practice where someone without having a legal title would sell to home buyers. Now buyers have to be cautious and see whether the project they are buying is RERA-compliant or not.

Detail of encumbrances

Is the land free from all encumbrances? Check the details of the encumbrances on such a land, including any rights, title, interest or name of any party in or over such land along with details.

Possession Date

RERA mandates that all projects have to be delivered as per the possession date mentioned by the developer. So, don't forget to check the time period within which he promises to complete the project or its phase. With RERA becoming a reality, it is important for developers to prepare for the changes promptly. "We believe that improved project planning will help developers avoid delays and manage project funds efficiently. It would be prudent to hire planning professionals to ensure timely project completion. Making such preparations early should give developers an edge over rivals and boost buyer's trust," said Surabhi Arora, Senior Associate Director, Research, Colliers International India.

Escrow Account

Seventy per cent of the amounts realised for real estate projects from allottees, from time to time, shall be deposited in a separate account. This account has to be maintained in a scheduled bank to cover the cost of construction and other costs related to construction. This means that the developer has to use the money for the same project for which the funds have been collected. If your developer has deposited the money it means he is willing to complete and deliver the project on time.

2017

Housing sales down 26% in NCR in first half

Housing sales down 26% in NCR in first half of 2017|Jul 06 2017 : The Times of India (Delhi)

New Delhi PTI   Housing sales fell 26% in Delhi-NCR in the first half of 2017, as demand continued to be sluggish postdemonetisation, despite a price correction of 20% in the last 18 months, according to international property consultant Knight Frank. Unsold housing stock in the Delhi-NCR property market stood at 1.8 lakh units -highest in the country -that will take developers four-anda-half years to sell. About 17,188 units were sold in the first half of 2017, compared to 23,092 units in H1 2016, Knight Frank India said. Housing sales did improve marginally by 2% from the previous six months, which saw lowest half yearly sales due to demonetisation move.

“NCR market continues to find newer depth and slide continues. NCR housing market is passing through the worst phase. No end to it,“ Knight Frank India Executive Director (Advisory , Retail and Hospitality) Ghulam Zia told reporters.

The consultant released latest report `India Real Estate Residential and Office' for January-June 2017 tracking eight top cities in the country.

On launches, Zia said it hit a “new low“ and fell by 73% in the first six months of this year at 4,800 units, 70% of which were below Rs 25 lakh, signalling shift towards affordable housing segment.

He attributed the fall in launches to demand slowdown and builders' focus on completing existing projects in view of the new Real Estate (Regulation and Development) Act.“Dwindling consumer confidence in the market courtesy delay in projects marred by litigations and poor connectivity in potential growth areas has slowed the market. That slowdown has restricted developers to launch new projects,“ the report said.