Month: September 2022

real state
September 16, 2022

How Delhi-Dehradun Expressway will give a boost to real estate

By News in Real Estate News with No comments

The new economic corridor between Delhi and Dehradun was announced by the Union Minister of Road Transport and Highways Nitin Gadkari in February. The 210-kilometer, six-lane express highway project, which is expected to be awarded by August 2021, will be completed by 2023. The Delhi-Dehradun Expressway will reduce travel time from the national capital to Dehradun from five to two hours.

A new six-lane road will be built from the Sahranpur bypass to connect with Haridwar in the new economic corridor. This route would cut the existing six-hour journey time between the national capital and Haridwar to just two hours. The real estate sector on the stretch is going to benefit from the development, and realtors are upbeat about the development.

Delhi-Dehradun Expressway is going to benefit real estate on the stretch; it will make more reputed developers come up with projects in tier II cities falling on this stretch as many buyers would love to have homes at places where prices are little less than Delhi. The travel time matters these days, and only 2.5 hours to Dehradun will help people buy second homes or holiday homes in this Hill city,” says Harvinder Singh Sikka, MD, Sikka Group.

Real estate development along corridors has become a trend and offers a lot of potential across India. Transport corridors like National Highways and State Highways across India have witnessed significant realty development during the real estate boom. The government has also helped in boosting and promoting industrialization in these areas. A combination of production units, public utilities, logistics, environmental protection facilities, residential areas, social infrastructure, administrative services and few industrial areas has been systematically planned along the corridors. These have further helped and accelerated economic growth.

Haridwar is one of the popular destinations, which will benefit from the Expressway. The city is already on the radar of people looking for holiday homes, and now more people will invest there. “People have always been worried about the time taken to move from Delhi to Haridwar, but with this Expressway, the frequency of travel will increase. The serene atmosphere of Haridwar helps people rejuvenate and get charged up for the hectic professional life. We hope that work completes on time, and with this real estate around this Expressway will prosper, which will add value to people’s lives,” says Nagaraju Routhu, CEO, Hero Realty.

Talking about the development, Abhishek Bansal, Executive Director, Pacific Group, says, “Weekend travels to Dehradun mean that retail sector, especially, malls will benefit from it. People love to shop and enjoy at places that are away from their work cities, and with only 2.5 hours of travel, people would throng Dehradun for the perfect getaway that it promises. We foresee a new wave of mall culture in the city as there would be a huge increase in footfalls, especially on weekends.”

Another boost for the real estate in Uttarakhand is the Metro rail corridor planned from Nepali Farm to Vidhan Sabha in Dehradun district. The 73-kilometer Deharadun–Haridwar–Rishikesh Metro Rail corridor in Uttarakhand was authorized by the Unified Metropolitan Transportation Authority (UMTA) in June 2020.

mussoorie
September 15, 2022

Pathetic condition of roads in Mussoorie

By News in Real Estate News with No comments

MUSSOORIE: Pothole-ridden roads are plaguing Mussoorie resident during the monsoon season with all major roads of the town in a poor condition, including the Mall Road. Portions of roads have been washed away and at many places, deep potholes have emerged posing a risk for pedestrians and motorists.


Residents say that even after the promise made by chief minister Pushkar Singh Dhami on September 2 to get all the roads of the town repaired, the roads are still in a bad shape.
Residents complain that many roads in the town — Mall Road, Kincraig to Picture Palace and Kincraig to Gandhi Chowk, Motilal Nehru Road, Zero Point to Municipal Garden Road — require immediate repairs.
“Mussoorie is a tourist town and the main roads of the town as well as internal roads are in a poor shape after the rains. The authorities are just carrying out temporary repairs on some of these roads, while many still lie neglected,” says Rajat Aggarwal, president of the traders’ body. Residents explain that while the main roads of the town have to be repaired by the public works department (PWD), the internal roads have to be maintained by the Mussoorie municipal council (MMC).

TOI spoke to chairman of MMC, Anuj Gupta who said that the repair of roads by MMC had been delayed due to rains. “Now the rains are abating, and we would take up road repair on priority basis,” Gupta said.
Meanwhile, Pushpendra Kumar, junior engineer of PWD alleged that repair work has started on the Mall Road, Kincraig to Picture Palace and Kincraig to Gandhi Chowk Road and also on Zero Point to Municipal Garden Road.
“We are only carrying out temporary repairs on the Mall Road as the entire road has to be re-laid soon, while on other roads, patchwork is being done. We would finish the repairs by the end of this month.

real state
September 14, 2022

The impact of FDI on real estate

By News in Real Estate News with No comments

The government has made great strides in the tiger-shree of FDI in real estate over the past sixteen years, and the time has come to take this a step further.

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The impact of FDI on real estate
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Currently, 100 per cent FDI is allowed under the automatic route in finished projects for the operation of townships, malls/shopping complexes, and business centres.
Real estate in India is the second largest employment producer, estimated to contribute to 13 per cent of the country’s GDP, and the third largest sector in FDI flow. It is poised to exceed Rs 65,000 crore by 2024 and 2025. The real estate market is constantly evolving with innovative solutions spanning residential, commercial, and retail projects in the main metros and across the country, even in tier 2 cities. According to a report by IBEF, Bengaluru is expected to be the most favoured property investment destination for NRIs, followed by Ahmedabad, Pune, Chennai, Goa, Delhi and Dehradun.

However, real estate has also been one of the most closely guarded industries to discourage speculation in the sector. FDI policy still prohibits speculative real estate activity. But, during the past decade and a half, the government has gradually loosened Foreign Direct Investment (FDI) regulations, enabling more investment and economic expansion. Currently, 100 per cent FDI is allowed under the automatic route in finished projects for the operation of townships, malls/shopping complexes, and business centres. However, there is still scope for relaxation in FDI in the sector to calm the real estate market chaos caused by the pandemic.


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A significant concern for the industry was the watering down of the 2016 Real Estate (Regulation & Development) Act (RERA) by the states, which allowed some developers to circumvent the regulations. This forced homebuyers to conduct even more comprehensive due diligence for under-construction projects. The homemaker’s apex body, FPCE, applied to the Supreme Court against this watering down of the rules by the states and stated it is against the consumer’s interest. The Supreme Court agreed and ordered the Centre to investigate if the rules created by various states under the Real Estate (Regulation and Development) Act, 2016 (RERA) are in accordance with the central legislation and serve the interests of homebuyers.

This will ensure uniformity in builder-buyer agreements across the RERA rules of various states. It will also facilitate trust between home buyers and builders by creating accountability and transparency. The government of India has proposed that 100 per cent FDI in completed RERA-registered projects with more than a hundred flats be allowed. The full benefits of RERA would be realised only if the provisions are implemented in letter and spirit.

Under RERA, builders could fully liquidate developed assets and commence construction on new projects with sufficient funds to meet their buyers’ needs. The sale of their current holdings would permit cash recycling, revitalising the market. The government should capitalise on the rising demand from international investors and focus on attracting more foreign direct investment.

Moving towards corporatization

FDI in real estate would be a boon for all parties. The Securities and Exchange Board of India (SEBI) has given its approval for the Real Estate Investment Trust (REIT) platform, which will allow all kinds of investors to invest in the Indian real estate market. It would create an opportunity worth Rs. 1.25 trillion (US$ 19.65 billion) in the coming years. An increase in the FDI cap will attract cheaper finance and more funds from overseas, ensuring projects are completed in time. Furthermore, it will strengthen the Indian rupee and keep inflation in check. The most marked change has been the shift from family-owned businesses to that of professionally managed developers. Real estate developers are hiring experienced experts in fields like project management, architecture, and engineering in order to fulfil the increased need for managing various projects across cities. They are also investing in centralised processes to source materials and organise labour. This in turn means that labour will get the benefit of higher wages and other benefits thanks to MNC firms.

Access to affordable and better-quality housing

Middle- and lower-middle-class citizens will be able to purchase their dream homes. Reductions in the built-up area would help attract foreign capital, resulting in more affordable and better-quality homes. The residential sector is expected to grow significantly, with the Central government aiming to build 20 million affordable houses in urban areas across the country by 2022, under the ambitious Pradhan Mantri Awas Yojana (PMAY) scheme of the Union Ministry of Housing and Urban Affairs. An additional 25 million units of affordable housing are required by 2030 to meet the growth in the country’s urban population.

tiger-shree

The government has made great strides in the tiger-shree of FDI in real estate over the past sixteen years, and the time has come to take this a step further. The easing and consolidation of regulatory requirements for completed assets would be advantageous for all parties—and time is of the essence. Swift implementation would expedite the benefits not only in the real estate sector but in all allied industries. Regulatory coherence paired with consistent efforts to make the sector more favourable towards investment will elevate the real estate market in India, and open up boundless opportunities. In the following two years, it’s anticipated that Indian real estate will draw a sizeable amount of FDI, with a US$ 8 billion capital influx by FY22.

REAL STATE
September 12, 2022

Looking for a home loan? Check out lowest interest rates based on credit score

By News in Real Estate News with No comments

Some banks offer home loans based on your credit score. It helps you borrow at a lower interest rate from banks and other financial institutions.
Written by Sanjeev Sinha
September 10, 2022 10:28:49 am
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Lowest home loan interest rates based on credit score
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Maintaining a healthy credit score is important to ensure quick access to funds from financial institutions.
Buying your own house is one of the major financial decisions. You consider multiple aspects before borrowing the funds for long terms, like 15-20 years. The loan processing involves multiple due diligence before the fund is finally disbursed to the borrower.

When you decide to buy a house, the first thing that comes to your mind is money. How will you arrange the funds? Some people have self-funding, while others take the option of borrowing from financial institutions such as banks and housing finance companies.

Home loan interest rate is very important in the loan processing journey. It decides your future repayments and tenure within which you will pay off the entire loan without delay and default. Almost everyone expects to borrow at a lower interest rate, but it is not possible. Multiple factors come in handy when you take a home loan.

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Your credit score is very important, as some banks offer lucrative interest rates to customers with higher credit scores. The interest rates may vary from lender to lender, but often higher credit score works in borrowers’ favour.

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A lower rate is important, as even a .5% interest difference can offer you great savings when you start repaying your loan. People must check their credit scores when searching for a home loan. They should know which lender offers the lowest interest rates to customers with higher credit scores of 750 and above.

Your credit score can increase or decrease depending on your financial habits. Maintaining a healthy credit score is important to ensure quick access to funds from financial institutions. If your credit score is not good enough to borrow large loans like a home loan, it makes sense to follow financial discipline and improve your credit score.

You must pay your bills on time and avoid delays and defaults in repayments towards your current loans. Find out the reasons for a lower score and see how you can improve to get the best deal when you borrow a home loan. One more strategy to borrow in lucrative deals is to borrow jointly. If one person has a poor credit score and another has a high one, the bank can consider offering you the home loan you want. You can also borrow a higher amount jointly as compared to individually.

Also Read: Want to enhance your personal loan eligibility? Follow these 4 tips

Some banks offer home loans based on your credit score. It helps you borrow at a lower interest rate from banks and other financial institutions. Banks offer good deals to people with higher credit scores considering the risk factor. People with higher credit scores are often treated as low-risk accounts, with lower chances of defaulting or delaying loans. That is why a good credit score is always considered an advantage.

The table below compares the home loan interest rates of some banks and housing finance companies based on credit scores. You can compare and take the decision according to what suits your requirement. Always perform your due diligence and read the terms and conditions of the loan agreement before the final decision.

Home loan interest rate corresponding to different levels of credit score

Table consists of home loan interest rate data of banks and NBFCs that shows their home loan rate linked to credit score on their website. Interest rate is indicative and in actual situation the rate may vary depending on various factors and bank’s T&C. Data as on 06 Sep 2022.

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