Realty Prices must Fall, Rajan tells Developers

finance minister Arun Jaitly keeps telling Reserve Bank Governor Raghuram Rajan to cut interest rates and now the latter has made a case for reduction in property prices. “If real estate developers, who are sitting on unsold stocks, start bringing down prices, that will be a big help to sector because once there is a sense that the prices, that will be a big help to the sector because once there is a sense that the prices have stabilized, more people will be willing to buy,” Dr. Rajan said. Given the high inventory of unsold flats across the country, he said, “I think we need the market to clear and with growing unsold stock we need to figure out ways to do it.”

The RBI Governor was speaking with State Bank of India boss Arundhati Bhattacharya at an interactive session in Mumbai on Thursday on Thursday, August 20. His comments come at a time when the realty sector is struggling with low demand and rising inventory of unsold flats. He said the developers should bring down house prices else the realty sector wills not some out of doldrums, “It will help the economy if realty firms reduce prices of unsold stocks,” he added. Property prices in some cities have witnessed small corrections, but analysts say there’s further scope for decline in property prices. Analysts have also cited high interest rates as a big factor for the slump in property sales. The Governor said banks should explore ways to make home loans easier, but quickly added that property prices must fall before rates are brought lower.” We don’t want to create a situation where prices remain high at a level that demand may not pick up to the extent necessary,” Dr. Rajan said. Earlier, he had said the central bank will cut interest rate provided it feels confident that inflation will remain below 6 per cent even after the reduction, “we will cut rate when we see that even after the rate cut inflation will remain below 6 per cent,” Dr Rajan said. RBI expects retail inflation to be around 6.1 per cent in January-March, 2016.

‘HOMEBUYERS MORE AWARE’

Another Good Samaritan campaigning for the environment is Amit Kumar, a school teacher by profession, who questioned the logic behind constructing residential apartment within a 10-km radius of the Okhla Bird Sanctuary. Following kumar’s complaint the National Green Tribunal gave orders prohibiting the New Okhla Industrial Development Authority (NOIDA) from giving completion certificates to housing projects falling within a 10-km radius of the Sanctuary.

“Such constructions were being carried out illegally without obtaining the required approval from the National Board of wildlife(NBWL) , “says Kumar’s lawyer,Gaurav kumar Bansal, who claims to have appeared pro bono for the case. “Since the government showed little concern for environment laws and failed to take care of the sanctuary, the applicant had to move court,” he adds.

Eventually, the homebuyers, the common people, were the ones to suffer the most. Had the builders and the authority taken clearances from the environment ministry for the projects this problem might not have arisen. The ball right now is in the ministry’s court as it has notify the 100 m buffer zone proposed by UP government before completion certificates are finally handed over.

There are many issues that this case has raised. One, public perception has undergone a change. Earlier, people would simply look at an advertisement and blindly book an apartment. Now homebuyers question builders, ask for environment and fire department clearances, adds Bansal.

A case which could have changed the game for home buyers, relates to jyoti Swaroop Arora, a consumer, who had complained of alleged collusion between realtors associated with the credai. Ant-trust watchdog competitions commission of India had then expanded the scope of the compliant to include around 20 developers and found that their actions indicated a “one-follows-the other” phenomenon which could not have meant independent action by the builders and that there was no evidence that credai allowed these companies to fix prices.

Had Arora gone for an appeal or if the matter had been referred to a higher court, it could have been a game-changer, says MM Sharma, head of competition law and policy, vaish Associates Advocates.

Govt notifies eco-sensitive zone around Okhla Bird Sanctuary; renders 59,400 Noida homes legal

Home buyers in Noida can heave a major sigh of relief with Environment Minister Prakash Javadekar yesterday announcing that the Centre has approved the eco-sensitive zone around the Okhla Bird Sanctuary by limiting it to 1 km.

“The notification of new eco sensitive zone will be out in one week. The limitation of justifiable limits around Okhla Sanctuary has been completed. The government has approved the draft notification on Okhla Eco Sensitive Zone,” Javadekar told CNBC-TV18.

“Under the draft notification, the eco-sensitive zone is the area up to 100 meter from eastern, western and southern boundary and up to 1.27 kms from the northern boundary of the Okhla bird sanctuary up to the DND flyover across the river bed, situated in the Gautam Budh Nagar district of Uttar Pradesh and southeast district of Delhi.”—The Times of India reported.

The minister said that the minutes of National Green Tribunal (NGT) would be ready in two days. The move will make 59,400 apartments legal.

“Today’s decision will help thousands of home buyers and ease the pain of EMIs,” he said.

Javadekar also allayed fears on any negative impact on the bird sanctuary and assured that the natural habitat won’t be in danger because of the decision.

Meanwhile, reacting to the green clearance on the periphery zone of the Okhla Bird Sanctuary, DLF sources, “National Green Tribunal notification ensures Noida Mall can be completed in three-four months. The Noida Mall may yield Rs 200 crore rental income per year post completion.”

“We hope government issues notification urgently. Occupation can become a reality only once completion certificate issued. The DLF Mall Of India is already complete. We hope to give out for rentals this year,” DLF sources told CNBC-TV18.

The Benefits of Buying Possessions in NCR through Online Platform

In the modern days the real estate bazaar has become a very safe and secure place for investment purposes. India is one country which is seeing a rise in its property sector. If we take a portrait of some years back the nation was referred as an agrarian economy but in the recent times it has developed a lot in terms of infrastructure and as a result there is an immense demand of office space in Noida/NCR and other major parts of the motherland.

In the age of modernization Indian metro cities have completely dissolved in its colors. The National Capital Region is one such area which has completely transformed within a short span of time. At the present the NCR enjoys great commercial significance and there is a mammoth call for office space in Noida and other counterparts of the National Capital Region. Delhi the capital city of India has expanded a lot in the recent times and eventually this has resulted in a rise in the commercial significance of the locality. The NCR in the recent times has become a very sweet place for investment purposes and there is a great demand of possessions here.

Benefits of Dealing Online

In the present era, Internet has provided a solution for everything. The real estate bazaar in the recent times has taken the assist of the World Wide Web. Reputed real estate agents have started their online portals to aid people in making correct investment decisions. Here are some of the advantages of these online property dealing portals –

Convenience – The biggest advantage of dealing in possessions online is that they provide users a lot of convenience. You get a real estate advisor in front of your digital screen. It provides a great ease to people who share a busy lifestyle.

Saving of Time – Another great thing about these online real estate agents is that they save you a lot of time and efforts. You need not take out time from your busy schedule and visit the real estate agent you just need to log on to these websites and browse the possessions and select the one which you like the most.

Infinite Choice – One more great thing about online real estate agents is that they provide people infinite choice. Suppose you want an office space in Connaught Place, you just need to open an online portal and you will get a list of all the favorable options in the locality.

Insure Your Home against Earthquakes

Most of people will advise that deadly earthquakes are restricted to a particular zone or region and there is no need to insure Home against Earthquakes. However, occurrence of earth quakes in the recent times has proven that earth quakes can occur almost anywhere and around the nook and corner of the world.

Most of us would be amazed to know that earthquake insurance is available in the market. People are not well informed about the vast insurance industry and insurance policies. Most of the people think that nothing will happen to us, to be more precise they are living in fool’s paradise.

Most of the experts from the home insurance industry feel that there is a greater need to purchase home insurance policy or building insurance policy against earthquakes, theft and fire.

The day 7.9 magnitude earthquake hit Nepal; we all were petrified by the merciless massacre of innocent lives. If it can happen in Nepal then it can happen anywhere. God forbid, but it may happen at our place.

A home is everyone’s Life. After working tirelessly, working day in and day out; a person saves each penny to build the home of his dreams. It is one of the most important assets that were created by him. So, it is his prime responsibility to safeguard his loved ones and his home sweet home.

There are huge concerns about our physical safety; hence home owners are in view of insuring home against earth quakes. So the best thing to do is to plan in advance and go for earthquake insurance policy. Standard homeowners’ insurance policy does not cover Earthquake damages. Therefore, there is a dire need to go for earth quake insurance.

Just by setting aside Rs. 8-14 a day, one can safeguard his home against earthquakes. Now, one must be shocked to know that cost of buying home insurance is so small. It should be the priority that most people used to consider an unnecessary expense few days ago. But, the Nepal earthquake has opened the eyes of such people.

One also need to consider number of factors while ascertaining his risk profile, whether he is located near coastal area or mountainous area, his house’s proximity to a earthquake zone and building construction materials and quality.

Most of the insurance companies offer earthquake insurance customized for individual requirements. They offer easy documentation and on the spot cover for your home. Insurance companies cater to everyone’s home insurance requirements.

Most importantly we need to know that home insurance does not cover the value of the property, it covers rebuilding the structure. The cost of the insurance policy can be lowered further, if it is purchased for the longer term. Most of the insurance companies offer huge discounts if one is going for long term home insurance policy. Though the premium is low for standard fire and perils insurance cover, but very few people go for home insurance. This shows the real status about the awareness of the insurance among people.

Go opt for a home insurance against earth quake. It is really simple- make a call to a general insurance company for your insurance need. Commercial real estate agents in Noida agent will arrive at decided venue and he/ she will ask a couple of key questions related to the home, area etcetera.