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amitbwadhwani · 4 years ago

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Maharashtra changes stamp duty rates on loan deals

The decision will increase the cost of registration of documents such as title deed, equitable mortgage, hypothecation submitted for the loans, etc.

In a move that might slightly increase the cost of property registration in the state, the Maharashtra government has increased the stamp duty on registration of various banking agreements related to property sale and purchase, after a cabinet meeting held on December 9, 2020

The decision will result in the stamp duty increasing from 0.2% to 0.3% of the agreement value on registration of documents, such as title deed, equitable mortgage, hypothecation submitted for the loans, etc. This effectively means that a home loan borrower will have to pay Rs 9,000 to register the loan document, if he is applying for a home loan of Rs 30 lakhs. On the other hand, the stamp duty on home loans where the buyer has yet to get possession has been reduced to 0.3% from the existing rate of 0.5%.

It is pertinent to mention here that when the sale deed is registered with the sub-registrar, the bank that lends the fund to the buyer for the purchase is given the original documents to keep as security, till the loan is fully repaid. To formalise this arrangement, a memorandum of deposit of title deed (MODT) is executed. Under the state laws, stamp duty and a registration charges are levied on this document, which must be registered.

Stamp duty is the state government-determined levy that buyers have to pay, as the legal cost of asset acquisition. The registration charges, on the other hand, are paid for the paper work that government agencies have to carry out, in order to formalise the ownership transfer in case of an immovable asset.

Charges on registration of home loan documents vary from state to state.

See also: 15 home loan hidden charges you should know about

Online registration of documents and online filing of notices will attract a stamp duty charge of Rs 15,000 now. The aim of the exercise was to bring uniformity and ensure people comply with the guidelines, the state revenue ministry said.

Recall here that Maharashtra has earlier reduced the stamp duty on property purchases with a view to boost consumer sentiment in the backdrop of the Coronavirus pandemic that resulted in property registrations in the state hitting record low during the lockdown period.

With the reduction that came into effect in August 2020, the state brought down the stamp duty on property registrations from 5% to 2% till December 31, 2020. After this period, buyers will pay 3% as the stamp duty on property registrations between January 1 and March 31, 2021. This reduction is available to buyers only for a limited period.

The reduction is stamp duty has been a key incentive for property investments, with 78% respondents in a consumer sentiment survey by Housing.com, saying they want to buy a property in the next one year.

To further encourage the builder community, the Maharashtra government recently reduced the construction premium by 50%, offering a major respite to developers. According to Dhiraj Bora, head-Marcomm, Paramount Group, the recent reduction in real estate premiums and stamp duty for Maharashtra has brought a windfall of sales for the region.

After stamp duty cut, Maharashtra hikes ready reckoner rates by an average of 1.74%

Days after announcing a 3% temporary reduction in stamp duty charges, the Maharashtra government has announced a hike in ready reckoner rates

September 14, 2020: Days after it announced a significant reduction in stamp duty, with an aim to boost buyer sentiment in the state, the Maharashtra government on September 11, 2020, announced a hike in the ready reckoner (RR) rates by an average 1.74%. Although marginal, the hike in the RR rates may undo the good done by the stamp duty reduction, industry experts say.

The hike in RR rates — a government-determined value below which a property cannot be registered in a particular locality — would be effective from September 12, 2020, exactly 11 days after the new and reduced stamp duty charges were implemented. Stamp duty on property transaction is calculated, using the RR rates, also known as circle rates, guidance value or collector rates. As cities are vast and the value of one area may be quite different from the value of another, the circle rates vary from locality to locality.

The developer community — which has been reeling under the combined effect of a prolonged slowdown, which has been aggravated by the Ccoronavirus pandemic and a severe liquidity crunch — has criticised the state government’s move. “It is surprising that in a scenario where everybody was suggesting a price reduction, be it (HDFC chairman) Deepak Parekh, (road and transport minister) Nitin Gadkari or (commerce minister) Piyush Goyal, the state government has instead opted to enhance the RR value,” says Niranjan Hiranandani, president (National) NAREDCO and ASSOCHAM. “Income tax provisions mean that a developer cannot sell at a price point lower than the RR rate, as it translates into taxation burden for both, the buyer and the seller. In this situation, the expectation was that the state government would reduce the value. Instead, it has chosen to increase the same,” Hiranandani added.

According to Ram Naik, executive director, The Guardians Real Estate Advisory, the state government’s move would send mixed signals among the buyers in Maharashtra. “While on one hand the government is indicating to home buyers that they want them to buy homes, by slashing the stamp duty, it is marginally increasing the ready reckoner rates on the other hand,” says Naik. “This increase, to a certain extent, is going to nullify the gains of the reduced stamp duty for the recently-motivated customer. This increase is also going to force developers to pass on the additional burden of increased premium costs that are linked to the ready reckoner prices, onto the customers. All in all, we could have waited for a better day for such announcements,” he adds.

Others, on the other hand, view the state move as more of a balancing act.

“The government has made a marginal upward revision in locations, where the rates were low and reduced the rates where they were high which has made it more balanced. This is a welcome move in favour of the customers,” said Rajan Bandelkar, president, NAREDCO west and convener, Housingforall.com.

According to Anuj Khetan, director, Vijay Khetan Group, the government has only rationalised the rates. “The rates have been slashed in few areas, whereas they have been hiked in some other areas. Therefore, it is not a direct increase in the rates,” says Khetan. “Nonetheless, it is not the right time to do this exercise, when the industry’s balance sheet is under severe stress and the country is reeling under the horrific COVID-19 pandemic,” he adds.

Impact on pricing in key cities

While the RR rates have been slashed by a marginal 0.6% in Mumbai, the average hike is quite steep in another expensive real estate market, Pune, where rates are now costlier by around 3.91%. “We have parameters to assess transactions and we have seen the maximum transactions in Pune district. Therefore, there has been a rise in the rates here,” inspector-general of registration and stamps (IGR), Omprakash Deshmukh said.

In Raigad and Nandurbar, too, the RR rates are now 3% higher. In Navi Mumbai, the RR rates have been increased by an average of 0.99% while the average hike in Thane has been of 0.44%. The average hike in RR rates in rural areas of Maharashtra was 2.81%. The average hike in RR rates in areas falling in influential zones of Maharashtra was 1.89%. Rates have been increased by an average of 1.02% in areas falling under the corporations, while the hike has been of 1.29% in areas falling under municipal councils.

Stamp duty reduction in Maharashtra

With stamp duty collection touching a historic low, amid the Coronavirus-induced lockdowns, the Maharashtra government on August 26, 2020, decided to temporarily reduce the stamp duty on property purchase in two slabs by up to 3%.

From September 1, 2020, to December 31, 2020, it decided to charge only 2% as stamp duty on property registrations as against the earlier 5%. From January 1, 2021 to March 31, 2021, the government announced a reduction of only 2%, effectively bring the stamp duty on property registrations to 3% for the three-month period.

See also: Maharashtra Stamp Act: An overview on stamp duty on immovable property

This was in fact the second reduction in stamp duty charges by the state in 2020. The step was prompted by a record low property registrations that caused severe damage to the state’s coffers.

Stamp duty is that percentage of the property value, which buyers have to pay to the state government to get the properties registered in their names. Additionally, 1% of the property value has to be paid as the registration charge. This significantly increases the total cost of the purchase and often acts as a deterrent for buyers in Mumbai and Pune, where the cost of properties are already high and buyers may not be a position to arrange for the extra costs.

The developer community, which has been demanding that the state reduce the stamp duty and rationalize RR rates, as the cost of buying property in key cities, especially Mumbai, is quite high, had then welcomed the move.

“We thank the government for acknowledging the slowdown in the overall economy and reducing the stamp duty rates, to stir up demand for homes. This will immensely benefit home buyers, as well as boost the real estate sector,” said Shailesh Puranik, MD, Puranik Builders.

“This is a fantastic move. Kudos to the Maharashtra government! It will certainly boost sales, as all those sitting on the fence will take the plunge. What is commendable is that they also put a timeline to it, which encourages buyers to buy sooner rather than later,” added Ram Raheja, director, S Raheja Realty.

With an aim to boost sales in the state earlier, especially in prime residential markets such as Mumbai, Pune and Nashik, the Maharashtra government, while presenting the annual budget in March 2020, lowered the stamp duty for these cities from 6% to 5% for two years.

However, before the reduction could make an impact, the central government announced a nationwide lockdown on March 24, 2020, that remained in force till May 30, 2020. During this period, property registration operations were partly suspended in the major markets of the state, severely impacting revenue.

Housing sales in Mumbai, for instance fell, 81% in April-June 2020, year-on-year(y-o-y), shows Housing.com data. Mumbai developers sold a total of 4,559 units between April and June 2020 as against 23,969 units in January-March, 2020 and 29,635 homes in Q2 2019.

What makes matters worse is that Mumbai also has the highest inventory stock, as compared to other leading residential markets in India. After seeing an annual reduction of 14% in its unsold stock, India’s financial capital currently has an inventory consisting of 2,76,492 units. At 37%, Mumbai is the highest contributor to the national inventory stock level, which stood at 7,38,335 units, as on June 30, 2020. At the current sales velocity, builders in this market would take approximately 40 months to sell off this stock.

In the Pune market, builders sold a total of 4,908 units during April-June 2020, as compared to 18,580 units in the same period last year. Pune also has an unsold inventory of 1,35,124 units, second only to Mumbai. The inventory overhang in Pune is, however, lesser at 30 months.

Inventory overhang is the time sellers would take to offload the unsold stock in a market, based on the current sales velocity.

Property to cost less in Mumbai, Pune and Nagpur as stamp duty cut by 1%

In a move that might boost home buyer sentiment in prime residential markets of the state, the Maharashtra government while presenting its Budget for FY 2020-21 on March 6, 2020, proposed to reduce stamp duty on property purchase by 1%

March 6, 2020: In a move that might boost home buyer sentiment in prime residential markets of the state, the Maharashtra government while presenting its Budget for FY 2020-21 on March 6, 2020, proposed to reduce stamp duty on property purchase by 1%. The reduced rates will be applicable in the areas falling under the MMRDA (Mumbai Metropolitan Region Development Authority) and municipal corporations of Pune, Pimpri-Chinchwad and Nagpur for two years.

Currently, home buyers in Mumbai, which is counted among the most expensive property markets in the world, pay a stamp duty of 6% on property purchase, apart from a 1% registration charge. In Pune, the stamp duty currently is 6%.

Stamp duty is a government-determined charge home buyers have to pay during the time of property registration, apart from a standard 1% registration charge. Stamp duty charges differ from one state to another, considering land is a state subject. Rules in this regard are governed by Section 3 of the Indian Stamp Duty Act, 1899.

The developer community has lauded the state government move to reduce the stamp duty.

“Any cost reduction is welcome … This move will positively impact home buyer sentiment. I appreciate the concern shown by the state government to help the home buyer and the real estate Industry,” said Niranjan Hiranandani, president, NAREDCO.

“The industry welcomes the state government’s initiative to provide relief and promote the revival of the sector. Huge unsold inventory and ready-to-move-in properties in Mumbai, Pune, and Nagpur are likely to benefit from this announcement. The festivities like Holi and Gudi Padwa are also approaching and we are hopeful that the sales will see an uptick in the next couple of quarters,” said Farshid Cooper, managing director Spenta Corporation.

Data available with PropTiger.com show there were a total of 296,465 unsold housing units across the MMR region as of December 2019. Also, a majority of the affordable stock lying unsold across India’s nine major markets is in Mumbai – India’s financial capital currently has over 1.38 lakh unsold affordable homes. Pune has an unsold housing stock consisting of 144,300 housing units currently.

“Lowering down the stamp duty charges from 6% to 5% (in Mumbai) is a good step taken in today’s Budget which will take some burden off the home buyers. Overall, (this is) a positive step by the government before Gudi Padwa,” said Vikas Jain, managing committee member, CREDAI-MCHI Raigad Unit and CEO of Labdhi Lifestyle.

Do not hike stamp duty to increase revenue: Maharashtra finance minister

Maharashtra’s finance minister Ajit Pawar has asked officials to refrain from increasing stamp duty on property deals and instead, focus on rationalising ready reckoner rates, to increase revenues

January 10, 2020: Maharashtra finance minister Ajit Pawar, on January 9, 2020, asked officials not to hike stamp duty on property deals. The revenue should be increased, instead, by rationalising ready reckoner rates (official rates of property for the purpose of computation of duty), he said. Pawar gave these instructions during a review meeting of the Department of Registration and Stamps, an official statement said.

It was also decided during the meeting that there should be a separate cadre of officers, for providing better services to people visiting Registration and Stamps offices. It was also decided that the Aadhaar card would be enough as identity proof for document registration and two witnesses will not be needed anymore for that purpose.

(With inputs from PTI)

Amnesty scheme for stamp duty penalty

March 12, 2019: The government of Maharashtra, on March 1, 2019, announced an amnesty scheme with respect to the penalty that can be levied for insufficient payment of stamp duty made in the past. The scheme proposes to limit the penalty payable on certain transactions to 10% of the deficient stamp duty, instead of the 400% which can be levied in normal course by the government. The scheme applies to all the transactions of sale or transfer of tenancy rights, of residential houses within Maharashtra and is available only for documents that have been executed on or before December 31, 2018. The application, along with the instrument and supporting documents, has to be made within a period of six months from March 1, 2019, i.e., by August 31, 2019, the period up to which the scheme will remain open.

(With inputs from PTI)

Stamp duty on land deals in MMR

People who executed land deals in the Mumbai Metropolitan Region between May 19 and September 19, 2017, may have to pay additional stamp duty, with the government approving the levy of stamp duty as per the 2017-18 ready reckoner rates, as against the 2016-17 rates

August 1, 2018: The Maharashtra cabinet, on July 31, 2018, has approved the recovery of stamp duty on land transactions executed in the Mumbai Metropolitan Region (MMR), between May 19 and September 19, 2017, as per the 2017-18 ready reckoner rates. Those who executed land deals during this period, will have to pay the difference between the stamp duty as per the 2017-18 rate and that as per the 2016-17 rate (which they may have paid), a government official said.

See also: Mumbai property buyers may have to face further increase in stamp duty

“The government had stayed the recovery as per the 2017-18 rate, on the request of the Maharashtra Chamber of Housing Industry. The chamber contended that the stamp duty be levied as per the 2016-17 rates, because the new rates were exorbitant,” he said. “A study group was set up and now, the stay has been lifted after receiving its findings. Today, the cabinet approved the recovery of additional amount of stamp duty for this period. However, the penalty (for late payment) will be waived,” the official said.

In another development, the cabinet also decided to allot 5.6 hectares of government land at Balewadi near Pune, for the Hinjewadi-Shivajinagar stretch of the Pune Metro. As per the market rate, the price of the land is Rs 153 crores and it is being allotted, as part of the state’s share in the project cost, the official added.

This article was originally published in English housing.com

All rights reserved. Any act of copying, reproducing, or distributing this newsletter whether wholly or in part, for any purpose without the permission of Amit B Wadhwani is strictly prohibited and shall be deemed to be copyright infringement

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theblogging10112389posts · 4 years ago

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Orovia Phase 1, Apartment That Meets Luxury & Contentment

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#real estate

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houseseekers · 4 years ago

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Hi-5 Reasons to Seek the Services of Real Estate Agent Expert to Buy a Property

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blogsosoulcollectionblr · 5 years ago

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#SevenGroup #7Group India #SevenGroup Mumbai #STOP

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abhishekkumar226-blog · 5 years ago

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ourbalajisymphony-blog · 5 years ago

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World Environment Day: Industry, Stakeholders, Pitch In To Build Green

This year, the theme for World Environment Day is air pollution. Numerous researches have pointed out that Indian cities are among the most polluted in the world and this includes Gurugram, Ghaziabad, Faridabad, Bhiwadi, Noida, Patna and Lucknow. Delhi too has witnessed severe air pollution, the long-term effects of which can be devastating.

Need for the construction sector to invest in sustainability

According to the Global Construction Sustainable Materials Market Research Report 2019, 23% of air pollution is caused by construction and related activities. At the same time, in India, the construction industry’s contribution to GDP rose to 9% in 2017 and is expected to increase to 15% by 2030. Consequently, this sector can significantly mould India’s environmental future, through heavy investments in green and sustainable practices.

Identifying the ‘green’ stages of construction

When it comes to green constructions, Sunita Purushottam, head – sustainability at Mahindra Lifespaces, points out that the entire lifecycle of a building – from site selection and design, to construction, occupancy and end-of-life phase – should be resource-conscious. At the design stage, the company creates blueprints that encourage green living and thereafter, resource-efficient materials are selected as part of the structure, fixtures and fittings, as well as on-site infrastructure. Optimal use of daylight is achieved via design, orientation, type of glass, shading and the right mix of enablers to reduce dependency on artificial light during the daytime.

“All Mahindra Lifespaces’ projects are designed, keeping in mind the sun-path, to maximise daylight potential for residents. This also helps reduce electricity consumption,” she adds.

It is also important for a company to zero-in on sustainable locations that are in close proximity to relevant social infrastructure and mass transit routes, she explains. At the construction stage, the focus is on reuse of construction waste, to minimise waste and fresh consumption, she adds.

In addition to bricks, fly ash can be used in concrete, cement roads, hardstands and floors in car-parking areas. The use of fly ash reduces dependency on cement, which is linked to CO2 emissions. Fly ash also helps enhance the thermal efficiency of buildings, keeping interiors cool in summer and warm in winter.

Green building technologies gain ground in India

Sustainable and best practices have become more commonplace now, with developer bodies, environmental activists and home buyers raising concerns over the lack of such residential projects. As a result, more and more firms are aiming for green construction. “Our new projects use cutting-edge technology and materials such as Pilkington Glass that offers higher levels of natural light, noise control, thermal insulation and protection from fire – all without compromising on strength and stability. This high-quality glass keeps residents cool in summer, warm in winter and reduces monthly energy costs,” says Rakesh Reddy, director, Aparna Constructions and Estates Private Limited. He says that his firm has also started using aluminium wall form-work, also called ‘Mivan technology’, as this construction technology offers significant advantages of quality, speed and minimal impact on the environment.

Are you living in an environment-friendly home?

For a building to be sustainable, much of this will depend on how the occupants use the premises. In addition to the residents making lifestyle changes to lead a green life, efforts also need to put by the developer firm.

For example, at the occupancy and maintenance stage, the developer must focus on the project’s sewage treatment plants, water treatment plants, rainwater harvesting systems, solid waste management systems, organic waste converters and waste segregation at source.

Other focus areas include use of renewable energy such as solar PV, use of XPS boards to achieve lesser U-value, solar water heating, solar street lights, energy efficient lighting through the use of LED, CFL, energy efficient lifts, pumps and motors, and low-VOC (Volatile Organic Compound) paints, adhesives and insulations to maintain healthy indoor air quality. Low-flow, water-efficient fixtures are also a must.

“Specially designed terrace roof sections, with high albedo material or reflective paint, to reduce heat absorption and the resulting energy demand on air-conditioning, should also be on the developer’s focus list,” adds Purushottam.

From affordable housing, to green affordable housing

Not just developers, others are also pitching in, to do their bit for the environment. IIFL Housing Finance, for example, is pushing to bring green homes to all. “As one of the biggest CLSS lenders, we realised that the kind of construction happening in this particular segment is not only creating dilapidated conditions of living but also harming the environment through conventional resource utilisation,” explains Monu Ratra, the company’s CEO. The company has signed a memorandum of understanding with the Indian Green Building Council (IGBC), a part of industry body CII, with a vision to provide sustainable green living for the affordable housing segment in India.

Towards this, IIFL has launched the ‘Kutumb’ initiative, seeking to assist developers to launch green projects across the country. This will have an independent cell headed by an architect and will roll out separate funds to developers committed to the cause of green buildings. The initiative has received recognition from three green certification agencies in India – Griha Council, EDGE and IGBC. Ratra says that the mission, is to provide ‘Green Housing for All’. The IGBC has also recognised the significance of sustainable development, says V Suresh, chairman of CII-IGBC, adding that they have given the green signal for collaborative promotion and implementation of green building concepts and the IGBC Green Affordable Housing Rating System.

Green buildings: Barriers in India’s construction sector

Nevertheless, cost remains a crucial factor in the adoption of sustainable practices. In terms of finances, a ‘lifecycle assessment’ by Mahindra, at its Mumbai’s Bhandup project, ‘Splendour’, demonstrated that green buildings offer a superior water and energy efficiency proposition, accompanied by significant reduction in utility bills, claims Purshottam.

“While globally, upscale and high-profile commercial and residential projects get certified by LEED and other agencies, this concept is still raw in India due to technological and financial barriers. One of the challenges, is to address myths around green buildings. One needs to understand that the intent of green buildings, is to create healthy and well-ventilated spaces. All this needs, is responsible design and construction solutions that do not have an incremental cost,” says Ratra.

India has already made significant progress, vis-à-vis sustainability in constructions. The National Building Code of India 2016 included the world’s first Sustainability Code under Part 11 – Approach to Sustainability. Moreover, standards like Residential Eco-Samhita by Bureau of Energy Efficiency, are unique in addressing the energy, water, air quality, site and material resource issues effectively. The need of the hour, is to abide by these regulations.

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Source:https://housing.com/news/world-environment-day-industry-stakeholders-pitch-in-to-build-green/

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ericfruits · 6 years ago

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Colonialism bequeathed a sense of entitlement to South Asia’s soldiers

IMRAN KHAN seemed weary, but otherwise in good form. Enthroned at his official residence, Pakistan’s prime minister tossed out well-rehearsed bromides about his plans for a naya or “new” Pakistan. He was just hitting his stride when an unsmiling, crisply uniformed soldier marched in, tapping his watch. Mr Khan begged for a few more minutes before mumbling excuses and following his minder out. Later, at an informal gathering, an ebullient general assured journalists that “my boss the PM” was fully in charge of the army and intelligence services, and that they were all “trying to convert Pakistan from a security paradigm to a development paradigm”. A cabinet minister nodded and chuckled obsequiously as the general spoke.

The general’s home, a colonial mansion dotted with photos of children at elite foreign universities, is located in Rawalpindi, the older twin city to Pakistan’s purpose-built capital, Islamabad. More specifically, it sits on a military base which is itself inside a cantonment. These exclusive garrison-suburbs are a peculiar feature of South Asian cities. India has 62 of them spread over 200,000 acres, Pakistan 43 and Bangladesh 30. As bubbles of leafy comfort ambered in pre-war gentility, complete with flower-sprinkled traffic circles, manicured lawns, tennis courts, officers’ messes and servants’ quarters, cantonments are among the least-altered holdovers of the British Raj.

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They are also an urban planner’s nightmare. The low-rise, low-density zones have in most cases long since been engulfed by crowded, bustling cities. Yet municipalities have little say over how cantonments are run. Intended for an alien army of occupation, they remain protected by sweeping pre-independence edicts. A military area that includes golf courses, officers’ housing, lavish headquarters for different service branches and an entire air base slashes a Manhattan-sized slice out of central Dhaka, the capital of Bangladesh. Residents of Navy Nagar in Mumbai tee off onto lush fairways facing the Arabian Sea next to some of the most expensive property in the world. Far inland in Agra, home to the Taj Mahal, the armed forces occupy not only a huge cantonment, but three-quarters of the Red Fort, another spectacular Mughal-era monument.

Pakistan’s army is still occupying new territory. The Defence Housing Authority (DHA), which was created in 1980 to support veterans and their families, has used its land-appropriating powers to build a sprawling property empire. In Pakistan’s biggest city, Karachi, it owns the entire district of Clifton, a swanky suburb with half a million residents and 15km of beachfront. DHA phases I-XI take up the entire south-east quarter of Lahore, the second-biggest city, including the main business district. “By introducing modern designs in construction of houses, infrastructure and essential associated facilities it has infused a new life in ‘Defence Living’, that is beautifully energetic, attractively vibrant and conveniently livable,” gushes the DHA’s website.

Pakistan’s supreme court is less enthusiastic. In a recent ruling that admonished the DHA for ignoring orders to open its accounts to public scrutiny, a judge remarked that the agency “seems like a government operating within the government”. Another judge was harsher: “You people run your business by using widows and martyrs as a shield, and you pocket royalties in their name.” In his cantonment mansion, the general scoffs at such rebukes. The DHA relieves the government from supporting veterans, he says. Besides, it is the country’s biggest taxpayer.

In India it is civilians who call the shots. Bureaucrats and politicians often enjoy perks, including gracious colonial bungalows, that are every bit as grand as officers’. There is greater public scrutiny, too: a recent government report took the army to task for failing to collect more than a decade of rent from a deadbeat tenant. Yet India’s army, every bit as spit-and-polished as Pakistan’s, if not as commercially unrestrained, does enjoy other colonial indulgences. A raft of special laws, some of them holdovers from emergency rules the British imposed during the second world war, allows its soldiers near-impunity in parts of the country that are deemed to be troubled. Following a terrorist attack on an army convoy in Kashmir in February, the army has simply closed the road involved for two days a week, even though it is the main highway through a valley with 7m residents. The echoes of the Raj are not lost on the locals.

This article appeared in the Asia section of the print edition under the headline "Where the Raj lives on"

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realestatedevelopersinnavim-blog · 6 years ago

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Dronagiri: New Rail Lines To Provide More Connectivity, Improve Network

Update on February 4, 2019: The interim budget 2019 has made a provision of Rs 584 crores, for various phases of the Mumbai Urban Transport Project (MUTP). The interim budget presented by finance minister Piyush Goyal, has allotted Rs 7,672 crores for the Central Railway in total, of which Rs 744 crores are for various transport projects. It will cover the Belapur-Seawood-Uran railway line project in the Mumbai region.

Transportation and connectivity are two key factors that home buyers keep in mind, while selecting a property. Consequently, areas that are well-connected to office hubs and market places, witness good demand. Recently, on November 11, 2018, the Central Railway (CR) opened up a 12-km corridor, which links Nerul and Belapur in Navi Mumbai with Kharkopar in Ulwe, much to the delight of the residents of Dronagiri and Ulwe. The corridor is the first phase of the 27-km Belapur-Uran corridor, which is being developed by the CR and the City and Industrial Development Corporation (CIDCO). Phase 1 had already missed several deadlines, before regular services on this stretch finally started on November 12, 2018, helping to link Ulwe with Chhatrapati Shivaji Maharaj Terminus (CSMT) and Panvel on the harbour route, besides Thane on the trans-harbour corridor.

Nerul-Uran railway line: Project status

There are six stations on the new section – Nerul, Seawoods-Darave, Belapur, Targhar, Bamandongri and Kharkopar. At present, the CR will operate 40 services daily, of which 20 will run between Kharkopar and Nerul and the rest between Belapur and Kharkopar stations, at frequency of 30 minutes. Seawoods and Bamandongri are approximately five kms apart, while Kharkopar and Bamandongri are separated by a distance of 1.5 kms. Bamandongri and Kharkopar stations will have double discharge platforms, subways and refreshment facilities. Targhar station, which is being built at a cost of Rs 105 crores, will have an elevated car park. Of the total 27-km-long project, the stretch from Kharkopar to Uran will be another 15 kms. The total cost of the project is about Rs 1,782 crores. “The railway line will increase connectivity to southern Navi Mumbai and make it an economic hub. It will also give a boost to the airport project and housing market in the area,” said Prajakta Lavangare Varma, joint managing director, CIDCO.

Nerul-Ulwe trains to ease commuting woes of residents

The opening of the new railway route, will improve access to Jawaharlal Nehru Port Trust (JNPT), Navi Mumbai Special Economic Zone (SEZ), the upcoming Navi Mumbai International Airport (NMIA), fishing communities in the region and also connect Panvel, Pen, Roha and CSMT. According to senior CIDCO officials, the suburban line between Seawoods and Kharkopar will pass through the centre of Ulwe. Until now, residents would rely on Navi Mumbai Municipal Transport (NMMT) buses and share rickshaws from Seawoods, Vashi and CBD Belapur stations, to get to Ulwe and Dronagiri. However, the rickshaw services were available only till 8.30 pm, in both the areas. Now, people in Ulwe can choose between Bamandongri and Kharkopar, to take the local train till Seawoods station.

Residents, who have been living in this region for the past five years, are hence, an excited lot. “Every day, I used to spend nearly five to six hours, on commuting to my office. Now, the new service will reduce my travel time by two hours. Moreover, due to regular train services, we can even travel to different parts of the city now. At Rs 10, the fare is also reasonable,” explains Varun Bodade, a resident of Ulwe.

Recounting the difficulties that she faced in commuting to work, Savita Sharma, a resident of Dronagiri, adds: “Whenever I had an evening shift in my office, I used to face problems in getting back home. Due to limited transportation options, I used to get delayed every day. Looking at the security aspect, my family even asked me to consider resigning from my job. However, now, the train service will make things easier for many women from the area, to travel to offices in different parts of the city.”

Railway line to boost property market in Ulwe and Dronagiri

Property developers are also happy with the starting of the new railway line, with many saying that inquiries for properties in the region have risen and some even managing to close deals. Hence, they feel that home buyers will not only consider Ulwe and Dronagiri as investment options but also shift to the area, because of the improved connectivity.

Rajesh Prajapati, managing director of Prajapati Constructions Ltd, points out that the extended delay in the Belapur-Uran railway project, had forced many people to look at other regions, for buying their homes. “Hence, the starting of services on this line, comes at an ideal time, when home buyers and investors were getting nervous about the future of their investments. Now, we are expecting more buyers for projects in the area which have good connectivity due to the railway line. We have closed down four deals, since the day of launch of the train services and new queries are coming in each day. With this development, the real estate market will leap forward,” Prajapati maintains. “A majority of the people did not want to buy real estate in this area, because of the commuting issues. For the past one year, the market was sluggish but now, we are expecting the prices to go up,” concludes Naresh Nagare, a local property consultant.

Dronagiri: Upcoming infrastructure make it a safe but long-term bet

Numerous upcoming infrastructure projects make Dronagiri a region that offers excellent potential on investment. The only catch – investors will have to look at a long-term time frame of seven to eight years.

August 21, 2017: Sangeeta Dubey bought a 2-BHK in Dronagiri and is happy with her decision. It was the only location in Navi Mumbai, where she could buy such a big house with her small budget. Dubey isn’t the only one, as this node’s planned infrastructure, has attracted quite a few investors. A senior official from the City and Industrial Development Corporation (CIDCO) said that the agency ‘tried to correct all the mistakes that we made while developing Vashi, Ulwe and Kharghar, while designing the master plan for Dronagiri.’

Dronagiri, an upcoming suburb, is located 22 kms away from Vashi and about three kms from Uran. Residential areas in the node are located to the west and north-west, while the Jawaharlal Nehru Port Trust (JNPT) area and township are in its northern part.

Why is it becoming attractive for buyers?

According to Rajesh Prajapati, managing director of Prajapati Constructions Ltd, “The area has plenty to offer, to prospective home buyers. From close proximity to employment areas such as ONGC and JNPT, to Uran’s nearby scenic beach which makes for great weekend getaways, Dronagiri has it all.”

Also, due to its proximity to the port, this zone is ideal for commercial development. Properties in the region also have the potential to generate healthy rental income, as the area meets the ‘walk to work’ criteria. Dronagiri has several good under-construction properties and large-sized plots, which are ideal for gated communities and high-rises at affordable rates.

Upcoming infrastructure

The area benefits from all the advantages that a planned city can have – broad and clean roads, power and water supply and the availability of hospitals, schools, colleges, supermarkets, banks and transport in the residential sectors. Moreover, it is only 10 kms away from the proposed Navi Mumbai International Airport.

Job prospects

Demand for residential property is expected to increase, as people employed in these sectors will need to live in the immediate vicinity. According to Nagesh Gharat, a real estate consultant from the area, “Several home buyers from Mumbai and Navi Mumbai have already started investing in properties in the area. They are attracted by the prospect that once companies start coming in, they will bring new employees to the area. All these employees are then expected to buy or rent properties here.”

Affordability

The prices for flats, are in the range of Rs 3,700-4,800 per sq ft. Presently, construction projects are concentrated in sectors 15 and 47.Property consultants advise that this is an ideal time to invest, as in the next two years, the inventory of under-construction properties will increase in all the sectors. Then, prices are likely to increase.

Issues of concern

Due to Dronagiri’s proximity to JNPT, there are many commercial vehicles on the roads, resulting in pollution. Another major concern, is the area’s social infrastructure, which is average. There is only one shopping mall and other facilities are also at a basic level. “It will take some time for the area to develop. If you can wait for another seven to eight years, then this place is worth investing,” concludes Prakash Awadh, a local developer.

Siddhivinayak Homes is a name that one identifies with, when it comes to the Real Estate Developers in Navi Mumbai. We are a Builders in Navi Mumbai that associate ourselves with efficiency and mega Projects in Navi Mumbai. What sets Siddhivinayak Homes projects apart from the rest is our technical expertise and the quality assurance that we give in delivering desirable homes. The Group has been influential in shaping the future of homes and the real estate sector in the futuristic city of Navi Mumbai. With a goal to fulfill the dreams of the middle class to the upper middle class customers, we are on the path of matching our ambitions and beyond.

Source: https://housing.com/news/dronagiri-upcoming-infrastructure-make-safe-long-term-bet/

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greenseoservices · 4 years ago

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