Arun Viva @ Ravet

Magnetic Maharashtra: State set to kickstart urban facelift drive after it gets Rs 12-lakh cr investment pledges - Firstpost

http://www.firstpost.com/business/magnetic-maharashtra-state-set-to-kickstart-urban-facelift-drive-after-it-gets-rs-12-lakh-cr-investment-pledges-4360953.html

Magnetic Maharashtra: State set to kickstart urban facelift drive after it gets Rs 12-lakh cr investment pledges

The two days Magnetic Maharashtra Convergence Summit 2018 has brought in for the state Rs 12 lakh crore worth investment pledges from the domestic as well foreign companies. The event comes close on the heels of chief minister Devendra Fadnavis revealing his state wants to transform into a $1 trillion economy by 2025.

The two days event was inaugurated by prime minister Narendra Modi in the presence of chief minister Devendra Fadnavis who told media persons that his sate will work to upgrade infrastructure, channel funding to aerospace, defence and gems and jewellery industry. The state government had expected Rs 10 lakh crore worth of investment promises, however, it received Rs 2 lakh more in pledges.

More than 5,000 new jobs are expected to be created provided the pledges turn into reality and funding comes on the ground. Chief minister Devendra Fadnavis while informing about the key proposals sad the metro coach factory at Latur will change the entire scenario and create huge development and employment opportunities in Marathwada. It will likely create direct employment of 15,000 and three times indirect employment, he tweeted.

"In past couple of years, Maharashtra has achieved a new trajectory in bolstering the state's industrial output. This is evident in multiple reports released by reputed financial bodies that places the state ahead of the rest in Ease of Doing Business, as also statistics such as 50 percent of infrastructural development of India being clocked in Maharashtra," Fadnavis told IANS.

Had an extremely good meeting and discussion with Hon Prime Minister of Canada @JustinTrudeau in Mumbai, this afternoon!

— Devendra Fadnavis (@Dev_Fadnavis) 9:05 PM - Feb 20, 2018

According to an Indian Express report this is what prime minister Narendra Modi said, "This has happened by creating an atmosphere of governance, people-friendly policies and reducing the government's interference." The inauguration ceremony saw several big corporate entities showing their interest in Maharashtra state. Reliance Industries chairman and managing director Mukesh Ambani said his group will bring in an investment of Rs 60,000 crore to develop Integrated Industrial Area in Maharashtra. Ambani added his and RIL's endeavour will be to make Maharashtra the state the "Cradle of fourth industrial revolution" in partnership with global companies.

Reuters image.

British multinational conglomerate Virgin Group has set its eyes on putting in place a new mode of transport for the busy Mumbai – Pune route by deploying the hyperloop technology.

MoU for Metro coach factory at Latur and other ₹60,000 MoU with Reliance Industry Ltd crore also exchanged in presence of CM @Dev_Fadnavis and Union Minister @PiyushGoyal on this occasion. pic.twitter.com/ETpDdRVnDK

— CMO Maharashtra (@CMOMaharashtra) 7:05 PM - Feb 20, 2018

The maker of the tube tunnel Hyperloop One has claimed the system will reduce the time taken to travel between the twin cities substantially. At present, the Mumbai-Pune Expressway serves as the fastest road on the route on which travellers take 3 to 4 hours. After the hyperloop tubes are in place, the time taken will be reduced to just 20 minutes and some reports claim 25 minutes on the stretch.

"We have signed an agreement with Maharashtra to build a Virgin Hyperloop between Mumbai and Pune, beginning with an operational demonstration track in the region," Virgin Group chairman Richard Branson told PTI on the first day of Magnetic Maharashtra investor summit here this evening.

According to an estimate, the tube transport mode will come with a 150 million passenger capacity a year. Branson told the participants that hyperlook route will transform the transportation system and make Maharashtra a global pioneer in the space, according to the PTI.

On real estate front the state has shown its keen interest in building homes for the poor under its ambitious affordable hosing programme. For the purpose, it has signed a memorandum of understanding with National Real Estate Development Corporation (Naredco) which will build three lakh affordable houses in the state. According to a report in the Hindu Business Line, the proposed investment by Naredco has been pegged at Rs 90,000 crore. The state has indicated it will make it easier for members of Naredco to get permission from the state departments concerned.

(Disclosure - Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd)

Published Date: Feb 21, 2018 14:22 PM | Updated Date: Feb 21, 2018 15:28 PM

Arun Gupta

Real estate still remains desirable asset for all India: Report, Real Estate News, ET RealEstate

https://realty.economictimes.indiatimes.com/news/industry/real-estate-still-remains-desirable-asset-for-all-india-report/62361273

Real estate still remains desirable asset for all India: Report

NEW DELHI: In a year marked with a series of policy changes to bring in more transparency, real estate remained a desirable asset for Indians as more than 15 lakh people actively searched to buy property in 2017, according to a report released on Wednesday.

"How India searched for Homes in 2017", prepared by online realty site Magicbricks, analysed consumer behaviour over the last 12 months to capture interesting consumer trends in 2017.

According to it, Maharashtra occupied the top spot with seven of its localities being the most preferred localities around the country. New Delhi remains a winner when it comes to rented properties while Navi Mumbai and Hyderabad are high on the buying meter.

"In a year marked with several policy changes, the fact that there were more than 15 lakh active searches for a property in 2017 debunks the myth that buyers have exited the market and establishes that real estate continues to be a desirable asset for Indians," said the property site's Head Marketing Prasun Kumar.

With prices remaining flattish over the last one year and demand-supply equation balancing out due to fewer project launches, it is certainly the right time for home buyers to invest in their home, he said.

The report also revealed that residents are also especially particular about the type of property.

Bengaluru is the one city open to mostly all building types. When it comes to specific choices, Hyderabad and Chennai prefer residential houses, plots and villas. multi-storey apartments are popular in Pune and Navi Mumbai, whereas Delhi, Ghaziabad and Chennai prefer builder floors. Metro cities like Ahmedabad and Mumbai favour penthouses, the report said.

Arun Gupta

Demand pattern in residential real estate changed in 2017: Sunil Agarwal, RICS | etrealty year Ender 2017 | ET RealEstate

https://realty.economictimes.indiatimes.com/year-ender-2017/news/detail/2469?utm_source=Mailer&utm_medium=ET_batch&utm_campaign=etrealty_news_2017-12-19

Demand pattern in residential real estate changed in 2017: Sunil Agarwal, RICS

BY: Sunil Agarwal, FRICS, Associate Dean and Director, School of Real Estate, RICS School of Built Environment, Amity University

It has been an action packed year for the real estate sector. The year 2017, saw the implementation of two historic legislations, the Real Estate (Regulation and Development) Act, 2016 and Goods and Services Tax (GST), which will alter the course of the sector. This came at a time, when the sector was still reeling under the shock of demonetisation-a policy measure announced by the government in 2016 to flush out black money from the economy. Demonetisation squeezed liquidity out of developers, forcing them to change their business models. For instance, developers now prefer to enter into joint development agreement with land owners over outright purchase of land. The year also saw India's apex court come to the rescue of distraught home buyers in multiple cases filed against developers. RERA is expected to take care of all future buyer grievances.

In the office space, strong economic growth continued to generate demand. The last two years 2015 and 2016 have been quite good for this segment with pan India office vacancy at its lowest in 5 years. Vacancy levels in some cities such as Bengaluru, Chennai, Hyderabad and Pune is around 5-10%, while pan India vacancy is at around 14-15%. On the supply side, there is a shortage of grade A office space. It is less than half of the current office stock across top eight cities at 280 million sq. ft. The gap between demand and supply of good quality office space is keeping office rentals strong. In comparison, retail properties saw significantly less rental value appreciation, especially in the National Capital Region. Mumbai and Bengaluru fared better. While occupier demand continues to rise in the office sector, there was no change in demand in the retail segment.

It was not the best of years for the residential property market. Businesses had to be realigned to comply with the stringent rules of RERA and GST. New project launches have slowed down and home prices seem to be under pressure. RERA has increased both the compliance level and cost for developers. Demand for luxury homes has taken a hit, while affordable homes continue to attract buyers.

GST, the other landmark legislation, has changed the demand pattern in the residential market. The tax does not apply to completed or ready to move in apartments. It only applies to under construction properties, which will be charged at 12 per cent (this does not include stamp duty and registration charges). This has caused a shift in buyer preference to ready to move in homes to avoid payment of GST. It is difficult to quantify the exact impact of GST on property prices. While developers will be able to avail input credit on goods and services bought and used during the construction process, we will have to see if they will pass this benefit to home buyers. GST is nevertheless expected to benefit affordable housing. The new tax regime is expected to keep real estate costs low for the affordable housing segment, thereby making it cheaper.
The positive impact of demonetisation from a home buyer's point of view is a fall in home prices. Land prices are however expected to remain the same. The other positive effect of this reform measure is an increase in regulation and tax compliance, though how much of this would translate into an increase in tax collection will have to be seen.

Arun Gupta

India on Hyperloop

 Who doesn't know about Hyperloop, right? Elon Musk's breakthrough super fast transportation system that can help people cover enormous distances in a matter of minutes is finally building its tracks around the world through Hyperloop One. And India's going to get a taste of it very soon!

HYPERLOOP ONE'S VISION FOR INDIA

In an event in Delhi, earlier today, Hyperloop One put forth its strategy to connect India's biggest cities and largest towns in a phased manner, providing commuters with a state-of-the-art alternative means of transport that's unrivalled in the world. Hyperloop One proposes to slingshot people in travel pods at 1,200 kmph through a tube propped up on concrete pillars. The pod or train is able to achieve the speed because it floats in a vacuum inside the tunnel.

In the presence of India's Railway Minister, Mr Suresh Prabhu, Hyperloop One's CEO Rob Lloyd revealed the fact that the company was accelerating its plan to unveil the system in India very soon, and that the company was conducting initial talks with the central government and other private companies to arrive at some sort of partnership to co-build and operate the Hyperloop One system across different routes in the country.

And there are some exciting routes planned. Take Bengaluru to Chennai, for instance, which is promising a journey time of just 21 minutes through Hyperloop. Similarly, Delhi to Mumbai would take approximately 80 minutes, with stops at Indore and Jaipur along the way -- the fastest available journey option currently is a flight that takes at least 2 hours from takeoff to landing. There are routes being planned from Bengaluru to Trivandrum, and an ambitious 220 min Hyperloop journey from Mumbai to Kolkata from the west coast to the east of India, with a big loop snaking southward along the track.

In a Bloomberg report, Hyperloop's CEO was quoted as saying, "India turns out to be a massive opportunity obviously for the concept of Hyperloop, which is why there's so much interest. We want to align the stakeholders to actually find a route that makes sense, to do the detailed engineering, do the work on financing that route, think about a public-private partnership."

It is no secret that India's growth is arrested by the fact that infrastructure hasn't grown at the same scale at which the country's population has exploded over the last twenty-thirty years, and this year's Annual Budget has tried to fix that by signalling investment in long-pending infrastructure projects, and making it a priority -- a move welcomed by several analysts and industrialists. While Hyperloop One may not solve the country's transportation woes completely, but it will at least alleviate the problem by a small amount -- that itself will be a huge win for not only Hyperloop One to grow in other global markets but also give Indians a state-of-the-art solution to their transportation woes. 

GST: Will GST make homes expensive?, Real Estate News, ET RealEstate

http://realty.economictimes.indiatimes.com/news/industry/will-gst-make-homes-expensive/59252316

Will GST make homes expensive?

The members of CREDAI (RNE) Raj Nagar Extension, believe that property prices will go up once the new tax regime kicks in

By: Ravi Kumar Diwaker (Magicbricks Bureau)

Come July 1, under-construction projects will attract a goods and services tax (GST) rate of 12%. Amid all the hullabaloo over the unified tax regime in the country, speculation is rife on would it lead to a hike in property prices?

The members of CREDAI (RNE) Raj Nagar Extension, believe that property prices will go up once the new tax regime kicks in. They feel RERA and GST will push price trends with a 10-20% spike in property prices.

"Taxes are being rationalised which will lead to increased transparency. There will be more clarity post-GST in terms of taxes. Under GST, the under-construction projects are going to attract 12% tax, where previously it was about 4.5%. This will push the market and we can expect an increase in prices. Steel will also attract 18% GST, which will further put stress on prices," says Manu Garg, Director, Carol Infrastructure Pvt Ltd, who was speaking at a press conference held by CREDAI, RNE chapter.

"Cement has seen both highs and lows in the past and it directly impacts the construction cost. Any increase in cement prices will directly influence the construction cost of a project. The government is also working on the correction of minimum wages. From here, the market will only move ahead so the best time to buy a house is now. Home loan rates are low and the market gives end-users and investors the right climate to buy," adds Garg.

General Secretary of CREDAI RNE, Gaurav Gupta says that the best time to buy property is now as prices are attractive and home loan rates are cheapest at this point in time. "The market offers attractive prices for home buyers. Home loan rates are the cheapest and affordable homes are getting subsidies from the government," explains Gupta.

The GST rate for steel has been finalised at 18% which is expected to be beneficial in the long run for other sectors as well. Cement prices are expected to go up marginally, as it has been put in the 28% tax slab from the earlier 23-24%.

Arun Gupta

Venkaiah Naidu: Modi govt approves over Rs 4.13 lakh crore for urban infra in 3 years: Venkaiah Naidu, Real Estate News, ET RealEstate

http://realty.economictimes.indiatimes.com/news/infrastructure/modi-govt-approves-over-rs-4-13-lakh-crore-for-urban-infra-in-3-years-venkaiah-naidu/59138697

Modi govt approves over Rs 4.13 lakh crore for urban infra in 3 years: Venkaiah Naidu

NEW DELHI: The Narendra Modi government has pumped in three and half times more investments than the previous UPA government to improve basic urban infrastructure, urban development minister M Venkaiah Naidu has said.

Along with investments, better per capital spending, central assistance and enhanced capacities of urban local bodies under new urban missions launched during the past three years are driving urban transformation, Naidu said. Comparing the urban development sector reforms during three years of the BJP-led government with 10 years under the UPA government, the minister said that per capita investment of Rs 15,475 has been approved during 2014-17 for a five-year period, more than three times the Rs 4,918 approved for 10 years under the UPA.

A total investment of Rs 4,13,475 crore has so far been approved for improving basic urban infrastructure, compared to Rs 1,18,034 crore approved under the Jawaharlal Nehru National Urban Renewal Mission, he said.

Addressing media persons on the urban sector initiatives, Naidu said, "A rule-based framework has been introduced to ensure objective selection of cities and allocation of central funds without any discretion and discrimination, and the same has been followed in getting unauthorised occupants of government houses evicted."

The minister said a major course correction has been launched during the past three years to improve quality of life in cities in an environment of inclusive, sustainable and accelerated urban development.

Giving an account of the positive outcomes of the initiatives of the government that are driving urban transformation, he said a total of 6,737 projects have so far been approved, more than double the 3,138 projects cleared under JNNURM.

"In an indication of the new language of governance and resource mobilisation, 322 AMRUT and smart cities have acquired credit ratings of which 147 have got investment grade," Naidu said. "For the first time, 500 AMRUT cities and 60 smart cities identified so far are pursuing five year comprehensive action plans for infrastructure development as against ad hoc approval of projects in the past."

Arun Gupta