Not happy with the minimal reduction in the repo rate, experts hope the benefits will pass on to the buyer.
The reduction in repo rate cut by 25 basis points to 7.50% is a welcome move, but we hope that banks pass this benefit to the end consumers. Even though RBI seems to have acted a bit late in easing the grip on liquidity, the successive rate cuts shall certainly push sentiments across manufacturing sector and real estate sector which have been impacted in the last few quarters.
Real estate sector may get green sops
The environment ministry is likely to ease green norms for the real estate sector, giving a boost to developers wanting to construct high-rise buildings. The relaxation is expected to allow builders to put up higher multi-storey buildings on smaller roads and lanes in cities.
Source: Pressdisplay.com
DNA Property Redevelopment Conference cum Exhibition
The DNA Property Redevelopment Conference cum Exhibition answered queries about redevelopment at an interactive seminar with experts from the industry, who came together to simplify redevelopment for the audience.
Redevelopment projects undertaken by Rustomjee are – Aspirée at Sion, Oriana at BKC Annex, Sangam at Santacruz and Rustomjee Pinnacle at Borivali.
Concrete perspective on redevelopment-DNA Property
“There should be no dissent among the society members. Select a reputed PMC and follow the 79 (A) process. Ensure there is transparency in the tender and selection process. The society’s expectations should be realistic. Do background check on the developer. Most reputed developers give a similar level of construction quality and amenities. Check for disrupting aspects among the members like pending court cases, etc, that may percent or delay the process.” – Krishna Jhala, Head Redevelopment, Rustomjee.
Real estate got a shot in the arm from finance minister P. Chidambaram in the budget for the next financial year, but it was mostly limited to affordable housing. He proposed a Rs.2.5 lakh deduction on the total taxable income on home loans less than Rs.25 lakh.
The deduction is applicable on loans from banks and non-banking financial companies (NBFCs). Currently, the deduction on interest payment of home loans is Rs.1 lakh, irrespective of the amount. With this proposal, a Rs.25 lakh home loan will get a total tax deduction of Rs.2.5 lakh on interest payments.
Property analysts tracking the real estate sector said that this would offer a welcome impetus to budget housing, first-time home buyers and to some extent, boost demand in smaller cities and the distant suburbs in metros.
Boman Rustom Irani, chairman and managing director of Rustomjee Group, said the two disappointments for the sector in the budget are that the real estate regulator, aimed at ensuring transparency, wasn’t announced and the sector hasn’t been given infrastructure status.
Read more: Budget’s real estate sops aimed mostly at affordable housing
Priority list for the real estate sector
The real estate sector hopes for lower interest rates, easier finance options and simplification of procedures from the upcoming budget.
As a sector that contributes significantly to meet one of the basic demands of life, the housing industry has much to ask for the Finance minister in the upcoming budget.
Enlisting his demands, Boman Rustom Irani, CMD, Rustomjee says, “Currently, the sector is looking at certain key policy decisions which make home buying a priority for everyone in the country. Giving infrastructure status to the affordable housing sector will help facilitate easy financing and address the housing problem to a large extent.”
Rustomjee Meridian
The year 2013 will be a game changer for the real estate industry, in terms of policies and regulations , with most pending bills expected to be passed in Parliament in the coming quarters, according to Pranab Datta, Chairman – Knight Frank India. Specifically in the case of real estate , these include the passage of two crucial bills, namely Real Estate Regulation Bill and Land Acquisition Bill, which are expected to boost the sentiment of all stakeholders.
Read more: 2013 a fresh beginning, with hopes for policy reform and better sentiment in real estate sector
A channel partners’ meet was held by Rustomjee Group at Thane on 30th May, 2012.
The event was held to build relations with our channel partners, wherein Mr. Percy Chowdhry, Director – Rustomjee, addressed the audience on the story behind the formation of Rustomjee.
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