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Gujarat Real Estate Updates

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  • Re : Gujarat Real Estate Updates

    Gujarat: Realty registrations spike, as hope lights up residential projects

    As many as 743 real estate projects — residential, commercial, mixed development and plotted schemes — have been registered with the Gujarat Real Estate Regulatory Authority (GujRERA) in 2021-22 as of September 9.
    Real estate project registrations across the state have picked up pace, thanks to the strong resurgence in demand and fast depleting unsold inventory. Registrations had taken a beating last fiscal due to the Covid-19 induced disruption.

    As many as 743 real estate projects — residential, commercial, mixed development and plotted schemes — have been registered with the Gujarat Real Estate Regulatory Authority (GujRERA) in 2021-22 as of September 9. This translates to 55% of last fiscal’s total 1,345 project registrations, and that too in just the first five months of the current fiscal.

    The total investment in these projects is estimated to be Rs 19,639 crore, which is about 60% of the total investment proposed through the registered projects last fiscal, shows data available with the state real estate regulatory authority.

    "Increased number of real estate projects have been registered with the state regulatory authority, especially in the past three months. This is because the demand for residential real estate has picked up pace, with people upgrading to bigger dwellings. The unsold inventory has also come down to its lowest levels in the wake of fewer launches over the past two years due to several factors, including the pandemic," said Tejas Joshi, president, CREDAI Ahmedabad-GIHED, city chapter of the Confederation of Real Estate Developers’ Associations of India (CREDAI).

    While the commercial segment remains muted, the residential segment has seen a strong demand across affordable, premium, luxury and plotting categories. This could be seen from the fact that 310 (42%) of the total projects registered are purely residential, while 275 (37%) are mixed-use projects.

    It may be mentioned that realty project registrations had declined by 23% to 1,345 in 2020-21 from 1,745 projects in 2019-20 due to the pandemic-induced slowdown.

    Pressure rises on margins as production costs escalate

    Real estate developers have seen their production cost escalating 10-12% with the rise in prices of cement, steel, sanitaryware, bricks and other construction materials.

    The increase in diesel prices has further raised the material transportation costs. Although real estate prices have gone up, developers have not been able to fully pass on the higher production cost to the consumers.

    "When many projects are hitting the market, developers cannot raise their prices," said a city-based realtor. As a result, realtors’ margins are getting squeezed.

    However, developers feel there can be a price hike. Steps such as a reduction in stamp duty and floor space index (FSI) fees can provide relief to both developers and consumers, said industry players.

    New launches to gain momentum

    With buoyant demand, along with the unsold inventory dwindling to its lowest level, realtors see more housing schemes coming to the market during the upcoming festive season.

    "Ongoing projects which are slated to be completed in the next one or two years have seen bookings up to 60-70%. With demand going up, several new projects are going to be launched during the festive season of Navratri, Dussehra and Diwali this year," added Joshi, who himself plans to launch two projects in the premium and luxury segment in the coming months.

    According to real estate consultant Knight Frank India, the unsold inventory (housing) in Ahmedabad stood at 12,151 units in January-June 2021 as against 40,035 units in January-June 2016. The projects which were registered last year, but could not be launched are also being rolled out now, say market players.

    "Given the improved sentiment and positivity in the market, developers also think that it is a time to roll out projects according to the customers’ current needs," Joshi said.

    Sales up 30-35%

    Traditionally, residential property bookings remain negligible from April to August. "This year, however, developers are witnessing an increase in site visits and bookings even in this lull period," said Dipak Patel, a city-based real estate developer.

    "Riding on the resurgent demand, sales and bookings have gone up by at least 30-35% compared to last September. Sales have bounced back to the levels seen before the outbreak of the pandemic," added Ashish Patel, president, CREDAI-Gujarat.

    The uptick in sales could be seen from the fact that the state’s revenue from stamp duty and property registrations jumped 148% at Rs 3,061 crore during April-July 2021. The revenue had stood at Rs 1,234 crore in the same period last year. In July alone, this revenue surged by 65% to Rs 968 crore.

    Realty consultant Knight Frank India’s latest report shows that 1,163 residential units were sold in Ahmedabad during April-June 2021, a growth of 362% over the same period last year. However, the sales were down when compared with the preceding quarter of January-March due to the second wave of the pandemic affecting sales on a quarter-on-quarter basis.

    NRI investments flowing in: NRGs from the US, the UK and Canada are buying housing properties in their hometowns in the state. Till now, commercial and plotting schemes used to grab a larger share of the NRI investments. Now, they are also purchasing housing apartments.










    Gujarat: Realty registrations spike, as hope lights up residential projects, Real Estate News, ET RealEstate (indiatimes.com)
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    • Re : Gujarat Real Estate Updates

      Ahmedabad: I-T carries out searches on B-Safal developers' premises

      Sources close to the development said that the search was carried out on premises associated with B-Safal developers. The realtor’s headquarters near Pakwan Crossroads, residences of promoters, and other properties were searched by the teams.
      • TNN
      • September 29, 2021, 09:36 IST

      AHMEDABAD: Multiple teams of Income-Tax (I-T) department carried out search operations on 22 locations belonging to a real estate developer, a couple of brokers and land dealers in the western parts of the city. The department officials did not disclose the amount or valuables found on the commercial and residential premises.

      Sources close to the development said that the search was carried out on premises associated with B-Safal developers. The realtor’s headquarters near Pakwan Crossroads, residences of promoters, and other properties were searched by the teams. Moreover, two land brokers and dealers with offices and residences in Gurukul and Drive-In Road areas were also covered under the operation.

      “Several land deals in the past few years – primarily in the past decade – are under the agency’s scanner. It is suspected that the tax was evaded by fudging records of land acquisition and deals. Further probe is on,” said sources close to the development.

      “Changing the modus operandi, the teams were asked to go to specific locations near the intended properties without usual police teams or hired taxis. After the teams reached the locations, they were given addresses. Thus, utmost secrecy was maintained.”











      Ahmedabad: I-T carries out searches on B-Safal developers' premises, Real Estate News, ET RealEstate (indiatimes.com)
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      • Re : Gujarat Real Estate Updates

        Housing loan payouts in Ahmedabad jump 142% in Q1: Report

        According to the latest report by State Level Bankers’ Committee (SLBC), housing finance disbursals stood at Rs 5,576 crore in the first quarter of 2021-22, up 142% against Rs 2,298 crore in the corresponding quarter of 2020-21.
        AHMEDABAD: Backed by buoyant demand for affordable as well as luxury homes, the disbursals for housing finance loans are showing a steep surge.

        According to the latest report by State Level Bankers’ Committee (SLBC), housing finance disbursals stood at Rs 5,576 crore in the first quarter of 2021-22, up 142% against Rs 2,298 crore in the corresponding quarter of 2020-21, albeit on a low-base effect due to the lockdown imposed in most part of the first quarter last year.

        According to the latest report by State Level Bankers’ Committee (SLBC), housing finance disbursals stood at Rs 2,856 crore in the first quarter of 2021-22, up 128% against Rs 1,252 crore in the corresponding quarter of 2020-21, albeit on a low-base effect due to the lockdown imposed in most part of the first quarter last year.

        The 170th SLBC meeting was virtually held on Tuesday. Bankers attribute the reason to an increase in demand for new homes in the post pandemic period.

        “The demand for new homes and sales have improved over a period of time. The significant surge is due to a low-base effect because last year, due to the lockdown, disbursals took a hit. While fresh uptakes slowed as people were in wait and watch mode due to the lockdown and pandemic-induced uncertainty,” said a top source in the SLBC.

        “Disbursal of loans takes place as and when construction progresses. Since construction work for residential projects had come to a halt because of the lockdown, disbursals had slowed. However, this time, the demand has picked up and launching of new projects too,” said the source.

        Real estate industry players also said that the demand for new homes increased in the past year. “Housing sales in the first six months of 2021 surged 67% to 4,208 units from 2,520 units in same period last year,” suggest industry estimates.

        Ahmedabad witnessed a rise of 137% to 6,226 units in the first half of 2021, as compared to 2,627 units in H1 2020.











        Housing loan payouts in Ahmedabad jump 142% in Q1: Report, Real Estate News, ET RealEstate (indiatimes.com)
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        • Re : Gujarat Real Estate Updates

          Gujarat HC orders Ahmedabad civic body to inspect Vejalpur society

          When the HC ordered the family last week to remove the construction, which cannot be regularised under GDCR rules, AMC officials insisted on the removal and the family approached the HC on Monday.
          AHMEDABAD: The Gujarat high court on Tuesday came down heavily on residents of Shree Bhavani Cooperative Housing Society in Vejalpur over unauthorized construction and ordered the Ahmedabad Municipal Corporation to undertake inspection and take action against against encroachers at the earliest and report back to the court.

          The case involves one Ramila Makwana, who assured the court four years ago that she would demolish construction illegally put up by her family. When the HC ordered the family last week to remove the construction, which cannot be regularised under GDCR rules, AMC officials insisted on the removal and the family approached the HC on Monday. Two women of the family broke down in the courtroom.

          This led the court to issue the family a stern warning to not indulge in emotional expression to move the court. The bench of Justice J B Pardiwala and Justice V D Nanavati said that the family took everything for granted, including the high court. The judges sent out a clear message to the society, “Crying and wailing before the court hardly matters. It will never weigh, and will not waver the court. The court is expected to follow the law and ask any citizen to comply with the law. The judiciary must not take on the colouration of whatever may be popular at the moment. The high court is a guardian of rights and we have to tell people things that they often don’t like to hear. No man is above the law and no man is below it; nor do we ask for any man’s permission when we ask any man to obey the law. It is demanded as a right and not as a favour.”

          The high court granted the petitioner one last chance to apply to the AMC for regularization of her house. The court came to know that many houses in the society, which were constructed when the area was not part of AMC, were built in violation of law. The high court expressed shock at the illegal construction and ordered the AMC to undertake a survey and inspection of the society “and if it is found that entire society is unauthorized, action should be taken at the earliest and reported to the court.”

          The HC made it clear that it should not happen that only one particular house is targeted and others go scot free. “The law will apply to all. If other bungalows are unauthorized, they should be demolished,” the court said.









          Gujarat HC orders Ahmedabad civic body to inspect Vejalpur society, Real Estate News, ET RealEstate (indiatimes.com)

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          • Re : Gujarat Real Estate Updates

            HC issues notice to Gujarat RERA, state government over plea filed by builder

            The petition was filed by Samkit Infracon challenging the judicial functioning and adjudication by RERA in a complaint filed by an allottee for possession of a shop in a complex being put up by the promoter.
            • TNN
            • October 19, 2021, 09:41 IST

            AHMEDABAD: The Gujarat high court has issued notice to the state government and the Gujarat Real Estate Regulatory Authority (GujRERA) over a petition filed by a real estate promoter complaining about adjudication of a case on a day when the judicial proceedings were suspended by RERA because of Covid-19 pandemic.

            The petition was filed by Samkit Infracon challenging the judicial functioning and adjudication by RERA in a complaint filed by an allottee for possession of a shop in a complex being put up by the promoter.

            Petitioner’s advocates Vishal Dave and Nipun Singhvi submitted that RERA passed the order on May 20, 2021 whereas the authority itself had on May 13 passed an administrative order in form of a circular that judicial functioning was suspended till May 31 due to Covid, except hearing of urgent cases.

            The lawyers contended that the RERA could not have passed the order on May 20 when all the judicial proceedings were suspended. Further, it was argued that RERA had not published any cause for the hearing on the day or for pronouncement of order.

            Even on the date of hearing, the authority had not intimated the promoter about the proceedings. The order could not have been passed without hearing the promoter and alleged that it was a violation of principles of natural justice.

            The HC has posted further hearing on November 17.









            HC issues notice to Gujarat RERA, state government over plea filed by builder, Real Estate News, ET RealEstate (indiatimes.com)
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