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Gujarat Real Estate Updates

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  • Re : Gujarat Real Estate Updates

    Realtors urge Gujarat government to reduce stamp duty, registration fees by 50%

    Recently, Maharashtra and a few other states slashed registration and stamp duty charges in a bid to boost real estate transactions. In Gujarat, stamp duty and registration fees are 5.90% of the cost of property.
    GANDHINAGAR: Bodies of realtors have written to the state government, seeking a minimum 50% cut in stamp duty and registration fees. Recently, Maharashtra and a few other states slashed registration and stamp duty charges in a bid to boost real estate transactions. In Gujarat, stamp duty and registration fees are 5.90% of the cost of property.

    Earlier, the Hasmukh Adhia-led committee, formed to chart out an economic revival roadmap for the state in the post-Covid-19 scenario, had recommended slashing of stamp duty. The government however, has avoided taking such a bold decision.

    Jaxay Shah, president of Confederation of Real Estate Developers’ Association of India (CREDAI) and other members of the Gujarat CREDAI met the CM and other key authorities in the state government and handed over a written representation, demanding at least 50% cut in the stamp duty and registration fees.

    CREDAI in its written submission to the state government, said, “While the Gujarat real estate sector has got majorly impacted from Covid-19, government needs to accept the long-pending demand of reducing the stamp duty & registration fees, at least by 50%.’‘

    The letter stated that the real estate sector helps a number of other sectors and it is a major sector for direct and indirect employment. The letter stated that stamp duty and registration fees are a big burden on home buyers, as majority of home buyers take long term loans and repay these with interest. “Many of the buyers have to take additional loans to pay stamp duty & registration fees, so the actual burden on the buyers is much more compared to the rates,” the letter said.

    “Maharashtra government took the progressive step and reduced the stamp duty & registration fees. Soon afterwards, the number of property registration increased substantially. If the Gujarat government reduces stamp duty & registration fees by at least 50%, it will be major boost to the home buyers and real estate sector,” the letter said.

    Realtors told the government in the letter that the Hasmukh Adhia-led committee has also recommended that stamp duty be slashed. “Like Maharashtra, we expect volumes of property registrations to go up substantially if rates are slashed. Effectively, the government revenue from stamp duty and registration fees will not be impacted,” the letter said, adding that the present unsold inventory is impacting both new projects and government revenue.

    Kaushik Patel, revenue minster said, “Associations have made a representation before the government, but no decision has been taken so far. The issue will be decided at CM level, so I will not make any comment.’‘









    Realtors urge Gujarat government to reduce stamp duty, registration fees by 50%, Real Estate News, ET RealEstate (indiatimes.com)
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    • Re : Gujarat Real Estate Updates

      Science City Road plot sold for Rs 100 crore

      TNN | Dec 15, 2020, 04:57 IST


      Science City area in Ahmedabad

      Ahmedabad: In yet another land deal in Ahmedabad, a city-based developer has recently bought a land parcel measuring 5,000 square yard on the Science City Road for approximately Rs 102 crore.

      The prime piece of land is located opposite Hetarth party plot on the Science City Road in Sola area. The plot is about 1km from Shukan Mall Crossroads towards the Science City Circle.

      “Going by the estimated deal size of Rs 102 crore, the rate per square yard works out to be Rs 2.05 lakh,” said sources aware of the development.

      According to the real estate sector players, the plot has fetched rates higher than the prevailing land prices in the area as it is in close proximity of the main road, where the floor space index (FSI) is also higher. The land parcels off the main Science City Road are priced at average Rs 1 lakh per square yard.

      “The buyer plans to develop a residential project on the land,” said a source privy to the development.

      This is the second major land deal in Ahmedabad over the past one month. Few weeks ago, a couple of city-based developers purchased a 5,000 square yard piece of land near the city’s posh Iskcon Circle on SG Highway for approximately Rs 150 crore.

      This land deal was reportedly done at Rs 3 lakh per square yard, which is the highest rate for land in city so far, said real estate sources. These land deals have been struck when the real estate, like several other sectors, is facing a tough time due to the Covid-19 induced slowdown.

      “This augurs well for the city’s real estate because such deals show that there is still an appetite for new development. Given the fact that land transactions have dried up since the outbreak of Covid-19, these deals also signal at the gradual improvement in market sentiment,” added a source.













      Science City Road plot sold for Rs 100 crore | Ahmedabad News - Times of India (indiatimes.com)
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      • Re : Gujarat Real Estate Updates

        Gujarat enforces land grabbing prohibition act 2020

        The Gujarat Land Grabbing (Prohibition) Act, 2020, to which state governor gave assent on October 8, lays down stringent punishment for land grabbers with an aim to protect the interests of small farmers and citizens, Rupani told reporters here.
        • PTI
        • Updated: December 16, 2020, 19:51 IST

        GANDHINAGAR: A stringent law to curb land-grabbing with a provision of up to 14 years in jail and timely resolution of such cases has come into force in Gujarat on Wednesday, Chief Minister Vijay Rupani announced.

        The Gujarat Land Grabbing (Prohibition) Act, 2020, to which state governor gave assent on October 8, lays down stringent punishment for land grabbers with an aim to protect the interests of small farmers and citizens, Rupani told reporters here.

        "Committees and special courts have been formed in each district for the purpose, and the law comes into force from today," he said.

        Land grabbing in any form shall be prohibited and declared unlawful and any such activity will be an offence punishable under the new Act.

        The government will enforce the law strictly and ensure the accused persons are punished, the CM said.

        As per the Act, a land grabber is a person who directly or indirectly takes illegal possession of lands and constructs unauthorised structures, or who collects or attempts to collect from any occupiers of such lands rent, compensation and other charges by criminal intimidation.

        Those found guilty of any of these crimes will be liable for 10 to 14 years of imprisonment and penalty equivalent to the jantri (government) rate of the land in question, says the Act.

        Such an offence by a company is also covered under the new law.

        "The Gujarat government is committed to protect the interests of small farmers and citizens who fall victim to land grabbers and are forced to fight long battles in civil courts and thereafter, enter into compromises with them against their will," Rupani said.

        He said as per the Act, a land grab complaint made by a victim with relevant documents will be taken up by a seven- member committee formed under collectors of respective districts once every 15 days.

        "The committee will ensure if the complaint is genuine or not. If it is genuine, the matter will be handed over to the police, who will lodge an FIR within a week," he said.

        Special courts constituted in each district under the Act will resolve the land grabbing cases within six months (from date of filing of the case before it), he said.

        Rupani further said the special courts may also take action against those grabbing government land, either suo motu (on its own) or on the basis of applications made by government officers authorised by the district collector.

        The Act provides for the constitution of special courts in every district and appointment of a public prosecutor for each court.

        It also makes provision for the burden of proof on the person who is alleged to have grabbed the land.

        Police officers not below the rank of a DySP or ACP shall carry out investigation in the case.











        Anti-land grabbing law in Gujarat: Gujarat enforces land grabbing prohibition act 2020, Real Estate News, ET RealEstate (indiatimes.com)
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        • Re : Gujarat Real Estate Updates

          Popular Builders: Owners get bail in one case

          TNN | Dec 25, 2020, 04:19 IST


          Ahmedabad: The Gujarat high court on Thursday granted bail to owners of Popular Builder, Raman and Dashrath Patel, in connection with an offence registered against them for not vacating a rented premise in Thaltej area.

          The brothers have been ordered to be released on furnishing Rs 15,000 bail bond. However, they cannot come out of jail because they are facing various other offences, which include charges of attempt to murder and criminal conspiracy as levelled against them by Raman Patel’s daughter-in-law, Fizu.

          After the allegations of domestic violence, the brothers were booked in several other offences related to land grabbing and cheating. tnn











          Popular Builders: Owners get bail in one case | Ahmedabad News - Times of India (indiatimes.com)

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          • Re : Gujarat Real Estate Updates

            Gujarat RERA extends submission date of annual reports for realtors

            Every promoter is required to submit the annual report on statement of accounts in Form-5 within six months after the end of a financial year for every registered project.
            • TNN
            • December 27, 2020, 09:58 IST

            AHMEDABAD: The Gujarat Real Estate Regulatory Authority (GujRERA) has further extended the due date for submission of annual reports (AR) for the real estate projects registered with the authority.

            The state real estate regulator has extended the deadline from December 31, 2020 to January 31, 2020. Every promoter is required to submit the annual report on statement of accounts in Form-5 within six months after the end of a financial year for every registered project.

            “The extended date for the submission of Form-5 for financial year 2019-20, which is due on December 31, 2020, is further extended up to January 31, 2021,” the authority stated in its order dated December 24.

            “Promoters and chartered accountants are required to comply with the requirement of submission of Form 5 by the revised time period,” the authority added.

            Previously, the due date for submission of annual reports was extended to December 31 in the wake of real estate activities getting adversely affected due to Covid-19 lockdown and the country-wide lockdown. tnn









            Gujarat RERA extends submission date of annual reports for realtors, Real Estate News, ET RealEstate (indiatimes.com)

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            • Re : Gujarat Real Estate Updates

              Ahmedabad: Work-from-home invites commercial property tax!

              The AMC has also directed Suresh Tahiliani, owner of the ceramic business in Naroda, to stop using a portion of his residence as workplace as he had earmarked a small space of the property as his office following the lockdown period.
              AHMEDABAD: At a time when a large number of offices has switched to work from home (WFH) mode to tide over the Covid-19 pandemic, it has proved costly for a local ceramic trader. The Ahmedabad Municipal Corporation has imposed commercial property tax on the trader for ‘commercial use’ of his residence after the officers found display of ceramic articles in his home.

              The AMC has also directed Suresh Tahiliani, owner of the ceramic business in Naroda, to stop using a portion of his residence as workplace as he had earmarked a small space of the property as his office following the lockdown period.

              Though Tahiliani stopped using the space as office, he was forced to move the city civil court against the AMC’s notice which also directed him to restore the property to its original status of “residential” . Last week, the court stayed any action on AMC notice at least till the civic body explained its position before the court.

              Tahiliani had purchased a residential property, demolished the structure and rebuilt it in 2016. A year later, he obtained the building use permission for residential purpose. He has been paying property tax to the civic body under the category of residential property for two years.

              In July this year, he was asked to pay commercial tax for the property for 2019-20 after civic officials found an office being run from the premises. Tahilani had no issue with paying commercial tax, but AMC issued him a notice asking to stop using the property for commercial purposes and restore the building to its original position.

              Tahilani wrote back to AMC in October explaining how he obtained BU permission after reconstruction three years ago. It was only for a short time after the lockdown that the small portion of the premises was used as an office where ceramic articles were also showcased.

              ‘WFH doesn’t mean setting up shop at home’

              Ahmedabad Municipal commissioner Mukesh Kumar said the merits of the case would have to be examined. “Usually, WFH does not mean that you can set up a shop at in your house. WFH means having a personal workstation, a few files and a corner room to yourself. AMC does entertain applications for converting part of residential properties for commercial use, but then there is a procedure.”

              “We receive applications from citizens for converting part of the residence for commercial use for requirements under Shops and Establishment Act or for obtaining professional tax certificates. But when people don’t reveal that part of their properties are used for commercial purpose we have to go by the book. At present AMC does not have any tax exemption policy WFH policies,” says a senior AMC tax official.

              AMC did not respond to Tahilani’s representation, and he went to civil court. The AMC has not responded to the court's notice and the court thus stayed any AMC action pending reply.








              Ahmedabad: Work-from-home invites commercial property tax!, Real Estate News, ET RealEstate (indiatimes.com)



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              • Re : Gujarat Real Estate Updates

                Price surge in raw materials raises construction cost in Ahmedabad

                A surge in prices of steel, cement and other raw materials has hiked the construction cost of affordable housing schemes. This means home buyers will have to bear the additional cost burden
                AHMEDABAD: Home buyers will now have to shell out around 20% more to own their ‘affordable’ dream pad. A surge in prices of steel, cement and other raw materials has raised the construction cost of affordable housing projects in Ahmedabad by around 30 per cent. This means that the additional cost will be passed on to the buyers.

                The situation could lead to delay in delivery and stall projects in some cases, impacting home buyers at large, said real estate experts. They also believe that the builders will face the difficult task of convincing the customers to bear the extra cost burden. This means that a 90 sqm (107 sq yard) house priced at around Rs 45 lakh, will cost around Rs 50 lakh (excluding the taxes).

                Therefore, many developers in the city have put the affordable housing projects on hold and may increase the property prices as it would not be feasible for them otherwise.

                Areas like Shela, Ghuma, Shilaj, Vaishnodevi circle, Tragad, Sugad, Naroda, Kathwada, New Maninagar and few other areas around 200 feet ring road are the ones where affordable housing schemes are either on or have been planned.

                As per CREDAI (Confederation of Real Estate Developers’ Association of India), steel prices have increased by more than 45 per cent since the beginning of this year.

                The manufacturers have been taking undue advantage of the increase in demand for steel by increasing the prices every month, it says. At the beginning of this year, the per tonne rate of steel was Rs 40,000 and this has touched Rs 58,000 this month.

                Similarly, in January 2020, cement price (50 kg bag) was around Rs 349 per bag, which is currently priced at Rs 420-Rs 430 per bag.

                Atul Shah, partner of Navpad Real Estate which is coming up with two affordable housing projects in Chandkheda said, “We have started two 3BHK projects with homes priced below Rs 45 lakh. Since we have not even reached the ground level of the project, the materials are going to cost us a bomb. So other than for the bookings done at the earlier rates, we will be increasing the flat’s cost by 20-25 per cent.”

                Prashant Shah of Nirman group told Mirror, “We have a project of 3BHK in Adalaj area and the flats are priced at around Rs 45 lakh. We have booked 55 flats so far and for the remaining we will have to increase the cost by around 20 per cent because the project has just started and will take 2-3 years for completion.” He added that with the hike in prices of raw materials, they will have to bear additional 30 per cent of construction cost which is comparatively high for an affordable housing project.

                The Confederation of Real Estate Developers’ Association of India (CREDAI), National Real Estate Development Council (NAREDCO) and many other organisations have written to ministers in the state governments, central government and Prime Minister Narendra Modi, urging them to take note of “cartelisation by cement and steel manufacturers”.

                They also have requested the government to intervene and regulate the cost of materials that have risen during the pandemic, delivering a blow to the real estate sector.

                “The real estate sector has been working on wafer thin margins and is battling unsold inventory on one hand and unfinished projects due to lack of funds on the other,” said Jaxay Shah, CREDAI Chairman.

                Shah added, “The government has to intervene to solve various issues pertaining to the real estate industry. There is an urgent need to control the spiralling steel, cement and other raw material prices and I urge the government to take necessary steps at the earliest.”










                Your ‘affordable’ dream home just got 20% costlier, Real Estate News, ET RealEstate (indiatimes.com)
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                • Re : Gujarat Real Estate Updates

                  Gujarat: Home loan disbursals rose to Rs 5,283 crore in Q2 2020

                  Compared to the preceding quarter of April-June, the surge in fresh housing loan disbursals works out to be 130% with a total of Rs 2,298 crore being disbursed in the quarter.
                  AHMEDABAD: In what could imply an increase in house sales, disbursement of fresh housing loans across Gujarat rose by 46% to Rs Rs 5,283 crore for the quarter ended September 2020 from Rs 3,620 crore in the same period last fiscal, shows data released by the State Level Bankers’ Committee (SLBC).

                  Compared to the preceding quarter of April-June, the surge in fresh housing loan disbursals works out to be 130% with a total of Rs 2,298 crore being disbursed in the quarter.

                  According to the SLBC, the total outstanding amount under housing finance by banks stood at Rs 92,195 crore by September as against Rs 76,280 crore in the same period last fiscal. The outstanding amount was Rs 89,818 crore in April-June 2020.

                  “Demand in the housing sector improved in the July-September quarter. People whose incomes have not been significantly affected during the pandemic have invested in the real estate sector. As a result, fresh disbursals for housing loans went up during the quarter,” said M M Bansal, convener, SLBC, Gujarat.

                  Industry players also confirmed a significant uptick in housing sales during the September quarter.

                  “Housing has now become a social security. Sales improved across all segments such as affordable, luxury homes, farm houses and plotting schemes. Fence sitters also made the decision and bought residential properties,” said Jaxay Shah, national chairman, The Confederation of Real Estate Developers’ Associations of India (CREDAI).

                  “Had the state government reduced stamp duty by 2%, fresh disbursals would have passed Rs 10,000 crore,” he added.

                  According to real estate consultant Knight Frank India, residential sales were buoyant in August and September. The Ahmedabad market alone saw 1,176 housing units being sold in the July-September quarter against April-June of 2020.

                  Industry players attributed the improvement in housing sales to factors such as low interest rates on home loans, discounts from developers and fence-sitter deciding to buy homes in the July-September quarter.

                  Even non-performing assets (NPAs) declined during the second quarter. “NPAs are usually less in the home loan segment as home buying has a certain sentimental value attached to it.

                  Moreover, the Supreme Court has imposed a stay on banks from classifying accounts as NPAs, since September 4 this year. This coupled with people opting for the moratorium kept NPAs in check,” said Bansal.












                  Gujarat: Home loan disbursals rose to Rs 5,283 crore in Q2 2020, Real Estate News, ET RealEstate (indiatimes.com)

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                  • Re : Gujarat Real Estate Updates

                    Gasp! Ahmedabad has most polluted air in the country

                    Himanshu Kaushik | TNN | Jan 6, 2021, 04:03 IST



                    Ahmedabad: This is one record that Amdavadis could have done without. The city registered an overall Air Quality Index (AQI) of 276 on Tuesday -- the highest in the entire country, according to the System of Air Quality Forecasting and Research (SAFAR).

                    Officials, who blamed increased traffic for the situation, warned that the city is less likely to see a drastic improvement on Wednesday as they expect AQI levels to be around 256.
                    Safar categorises levels of PM2.5 (particulate matter with diameter less than 2.5 micrometres) in the 201-300 range as poor. People with heart or lung diseases and the elderly are advised to avoid heavy exertion and outdoor activity. PM2.5 is measured in micrograms per cubic metre.

                    Among the locations in the city monitored by SAFAR, airport area registered the highest concentration of PM 2.5 with AQI of 342. Raikhad followed with 316. Lekhwada, too, recorded PM 2.5 of more than 300. Bopal area registered the lowest PM 2.5 at 180, revealed SAFAR data.

                    Compared to this, not a single area in Delhi and Pune had AQI levels above 250. In Mumbai, Navi Mumbai and Mazagaon recovered over 300 AQI but it was still lower than that recorded at Airport and Lekhwada areas here.

                    Higher concentration of PM 2.5 causes the air to appear hazy and reduces visibility. Outdoor PM 2.5 levels are most likely to be elevated on days when there is little or no wind.
















                    Gasp! Ahmedabad has most polluted air in the country | Ahmedabad News - Times of India (indiatimes.com)


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                    • Re : Gujarat Real Estate Updates

                      Gujarat: Revenue from property registrations sees 16% growth in Oct-Dec 2020

                      The state government earned a revenue of Rs 303 crore more in the period between October and December as compared to the same period in 2019.
                      GANDHINAGAR: While the Covid-19 pandemic outbreak has had a paralysing effect on all economic activity, the real estate sector in the state appears not only to be bucking the gloom, but rebounding rather emphatically.

                      A comparison of figures of the last quarter of the last calendar year (October to December 2020) show a marked increase in stamp duty and registration fees collection along with a number of property registrations against the corresponding period of the previous year.

                      These figures clearly indicate a recovery and growth of the real estate sector. The state government earned a revenue of Rs 303 crore more in the period between October and December as compared to the same period in 2019.
                      In fact, a good 50,877 more property documents were registered between October and December 2020, as compared to those between October to December 2019.

                      The government collected a revenue of Rs 1,868 crore in the last three months of the 2019 calendar year (Oct - Dec) in the form of income from stamp duty and registration fees, wherein 2,94,067 documents were registered. In the corresponding period of 2020, the state government garnered an income of Rs 2,171 from stamp duty and registration fees and 3,44,944 documents were registered.

                      Key officials in the state stamp duty collection & registrar office said, “Despite poor collection and registration of documents in the first few months of the present financial year, property registration has increased significantly in the past three months. We expect this trend to continue in the ongoing quarter as well.”

                      However, the overall expected collection of revenue from stamp duty and registration fees for the entire financial year will not be met. This is because the stamp duty and registration fees collection during the earlier part of the year (April 2020 to September 2020) was significantly lower because of the lockdown.










                      Gujarat: Revenue from property registrations sees 16% growth in Oct-Dec 2020, Real Estate News, ET RealEstate (indiatimes.com)
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