Recently with the alliance formed in Bihar it is expected to have a major development with some new reform policies. Tax regime and legislation for a real estate regulator, both of which are expected to get parliamentary nod in the current winter session of parliament. The government gave a Diwali bonanza by easing foreign investment norms in 15 major sectors, including construction, and raising the approval limit for the Foreign Investment Promotion Board (FIPB) from Rs.3,000 crore to Rs.5,000 crore. Thus, Bihar will also get a major dig to the realty market with the flagship of “Housing for all” initiative.
Telangana Chief Minister K Chandrasekhar Rao is planning to do some regulatory changes in the realty sector of Telangana to bring transparency and easy clearing process. This will be on the lines of Telangana State Industrial Project Approval and Self Certification System (TS-iPass) for industries. He recently met CREDAI and the developers to build a Greenfield city with an area of 3000 – 4000 acre in the outer ring road.
Ref: The Hindu Businessline http://www.thehindubusinessline.com/news/national/telangana-cm-hints-at-a-legislation-to-make-business-simple-and-easy-for-real-estate-construction-firms/article7930069.ece
The real estate market hasn’t seen a big revival this festive season, but interestingly there is growth in consumption of all kinds in other sectors. Could this be a sign for the real estate market as well? People are starting to buy. They might not be buying homes just yet, but at least the buying process has started. The low to mid value products are seeing growth. And there is usually a lag between improvement in the economy and improvement in home sales.
Ref: Ravi Teja Sharma Assistant Editor, The Economic Times http://realty.economictimes.indiatimes.com/realty-check/when-will-this-real-estate-winter-end/1054
The main functionality of a regulatory bill is to safeguard the interest of consumers and help developers do business as per the stipulated guidelines. This draft bill has many elements that will help consumers crack a fair deal for their dream homes. The provision to launch or market a project only after getting all the necessary approvals will certainly benefit customers. This will check the fraudulent activities generally carried at lower levels especially by brokers and dealers. They will now not be able to fool the buyers through misleading claims and advertisements.
Xander Group plans a deeper dig
“We are the largest institutional owner of real estate assets in India excluding road and highway assets,” Siddharth Yog, Founder of The Xander Group Inc.The Xander group is now taking a deeper dig in the realty market with more retail and commercial projects. The government recently removed restrictions on FDI into the sector, except keeping a three-year lock-in period for select cases. There will now be no lock-in period for FDI investments in hotels and resorts, hospitals, special economic zones, educational institutions, old-age homes and NRI investments, allowing for greater and smoother flow of foreign money into these categories.
Ref: Sobia Khan; ET Bureau, http://realty.economictimes.indiatimes.com/news/industry/xander-group-plans-to-lap-up-more-realty-in-india/49978748