AFFORDABLE HOUSING POLICY-2013_HARYANA

Sometimes back, I got a chance to study Haryana government Affordable Housing Policy which has been introduced in 2013 to promote the affordable housing projects in urban area of Haryana state. I realized this is one of the best policies for Indian Real Estate market in India, and every Real Estate professional must be aware about the same policy. We could have implemented RERA with the inline of Affordable Housing Policy. I understand RERA has the capabilities to turnaround the Indian Real Estate market. But still most of the builders have no clarity on overall act and in-fact some of the states are in very initial stage of implementing RERA, i am afraid how state government would implement RERA at such short period.
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Here, I would love to share the crux of the Haryana Affordable Housing Policy.

1.  Apartments in the project under affordable housing must have pre-defined size with pre-defined rate within target frame line of 4 years.

2. Maximum possession time would be 4 years from the date of approvals of building or grant of environment clearance, whichever is later.

3. Once project is approved under affordable housing cannot be converted in normal housing project.

4. Affordable housing project can developed in only on 5% of the net residential zone area and maximum net planned area can be permitted in 10 acres area only.

5. Projects are allowed only the residential zone of the notified development plans of the cities of the state.

6. Application for request of approval of the project from concern authority is based on first come first serve basis.

7. Minimum& maximum density permitted is 850ppa & 900ppa respectively. And density is calculated average occupancy per flat i.e. 5 person.

8. Maximum FSI is 2.25 is allowed.

9. Building of the Project can be developed in 50% area only.

10. Maximum FSI for commercial project is 1.75 on 4% of the net planned area.

11. Minimum 15% area is organized open space of the net planned area.

12. Carpet area of the apartment should be between 301 sq. ft. to 646 sq. ft, which does not include balcony/terrace of an apartment. Or I can say carpet area means area does not included under FSI.

13. No separate EWS category will be provided.

14. Parking space shall be provided at the rate of half equivalent car space for each dwelling unit.

15. Only one 2 wheeler parking space will allotted for each flat.

16. No car parking shall be allotted to any flat owner in affordable housing project.

17. Following are the facility is compulsory like Community Hall and Creche area not less than 2000 sq. ft. separately.

18. Maintenance cost is 4% of the apartment cost for the period of 5 years from the date of occupancy.

19. Balcony is charged at partial rate i.e. max Rs.500/- sq. ft. and balcony should not be more than 100 sq. ft.

20. Rate per sq. ft. varies from Rs.3000/- to Rs.5000/- depending upon the divided zone area.

21. Any person can apply but person who does not own any flat in any HUDA developed colony or any other project under Haryana, UT of Chandigarh and NCR Delhi.

22. Maximum 5% of the total apartment in project can be allotted to builder’s relative/friends/associates/employee, etc. But the policy stands still for these customers as well.

Above are the basic concepts of Affordable Housing Policy, which only motive is to create homes for middle and lower middle class family in Urban areas.

Keep Reading…….

 Happy Reading………

Best Wishes,

Praveen Kumar

Real Estate Regulatory Authority (RERA)

The Real Estate Act makes it mandatory for all commercial and residential projects where the land size is over 500 sq. mtr. or 8 apartments/flats/units, to register with the Real Estate Regulatory Authority (RERA) for launching a project, in order to provide more transparency in any project. For under construction property, builder will have to complete the registration of the said property within 3 months. Application for registration must be either approved or rejected within a period of 30 days from the date of application by the RERA. On successful registration, the promoter of the project will be provided with a registration number, a login id and password for the applicants to fill up essential details on the website of the RERA. In case of fails to register, builder has penalty of up to 10% of the project cost or 3 years imprisonment may be imposed. It has made to smoothen the real estate practices, timely delivery, payment schedule as per actual constructions & most importantly, to deliver what builders show in sales & marketing collaterals during the sale of the property/flat. Further builder has to share all the details related to particular projects like- project lay out plan, floor plans, land status, government sanctions & approvals, etc.

Also RERA made mandatory for real estate agents/broker as well who promotes to sell or purchase of properties, must take prior registration from RERA. Such agents or brokers will be issued a single registration number for each state, which must be quoted by the agent in every sale done through them.

Following are the points which cover under RERA:

1.  All the builders has to have Escrow account & 70% funds of the deposited money in the project account will not be diverted anywhere, only now builder can play with 30% of the project funds. Means, only profit margin amount can be diverted now.

2.  Builder has to quote/sale price on carpet area only. So consumer may understand costing of the any particular flat better. Consumer has to pay now only for what he/she is getting now. As of now, may consumer does not know the difference between carpet are, saleable area, built-up area or super built-up area, so sell on carpet area will give more transparency in actual flat size.

3.  Timely delivery of the projects, since builder has to give the delivery date of the project if fails huge penalty on builders. Delaying the possession dates is the most common practice today. This has huge financial and personal implications for the buyers. In order to ensure strict adherence to the promised schedule, the Bill is entitled to impose 100 percent refund from the builder to the buyer with interest, in case of a long delay in handing over the flats.

4.  Builders often promote their projects by showcasing infrastructure and amenities on paper, that are absent from the finished project. In order to hold the builders accountable for all such promises that they make, the Bill does not allow any changes in the project at a later stage. If the builder is found guilty of over-promising and under-delivering, then he can be penalized at 10 percent of the project cost or up to three years of imprisonment.

5.  Most of the builders do not share with consumers pending approval or sanctions of the project. This may affect the project later or trouble the consumer. The Bill clearly states that it’s mandatory for builders to ensure all government clearances for the project well before they start selling flats.

6.  It would be mandatory for builders to get all the required clearances from relevant authorities before formally launching the project. Right now builders launch the project when there is nothing at the land and have no permissions for anything. They give rosy pictures to investors, end users and start taking the money from public & then start the getting approvals and coming up with the structure. This means there will be obvious delays and lots of confusion for investors & end users. Now, the concept of “pre-launch” offers will vanish.

7.  The Bill offers the buyers to approach the builders even after possession. Consumer can approach builder even after 1 year from possession in case of any defects or deficiency in the property. Thus the builder shall be liable to rectify the issue at hand as early as possible.

8.  A builder will not be able to take more than 10% advance money from buyers without a written agreement. Currently builder asks for huge money as an advance.

9.  Builders will have to use the actual site pictures or the actual construction work pictures for advertisements for the project. Right now builders do not use the actual pictures for promotional purpose. It’s easy to create an illusion by using graphics and shiny pictures and that is what happens most of the times.

Almost all the states has submitted the final draft bill of RERA to central government & central government would be making mandatory to all the states & UT to implement asap.

May Real Estate industry would have golden time soon, since demonetization has been done, GST implementing soon, Pradhan Mantri Awas Yojana i.e Pakka Ghar for every Indian & now also focus on affordable housing developments. Few of the builders have already started the process to build the affordable housing which will definitely increase the demand.

Awaiting for the Golden Period of Real Estate……

Best Wishes

Praveen Kumar

+91 91 588 922 86

7 PLUMERIA DRIVE by BHANDARI ASSOCIATES & NAMRATA GROUP

7 PLUMERIA DRIVE by Bhandari Associates is one of the finest residential projects in West, Pune. Bhandari Associates has also developed 43 Privet Drive in Balewadi & this is one of the best project in that area. 43PD was commenced in Oct-2011 & started handing over form March 2015. 43PD is one of most successful project by Bhandari Associates. After successful handing over of 43PD, group has started drive series to target the premium segment. 2nd project in drive series is 7PD where booking commenced in Oct’2014 and tentative possession date is June-2018 onwards. Now 3rd drive series project (32 Pinewood Drive) will be commenced soon in Hinjewadi phase3. Drive series is completely different from other projects by Bhandari Associates. 7PD has lot of USP which attracts prospective home buyers (end users & investors).

MASTER LAYOUT

Following are the USP of 7PD:

• Closeness to Hinjewadi IT-BT park, Talwade IT Park, PCMC industrial belt, upcoming Talegaon MIDC developments, major mall and bazaar in PCMC and it is between Mumbai-Bangalore Highway & Aundh-Ravet BRTS Road which makes excellent connectivity.
• 7PD is connected thru PCMC DP road.
• Project spread over 16 Acres & 80% area is open
• 80,000 Sq. Ft. garden reservation adjacent to 7PD.
• 1, 00,000 Sq. Ft. reserved for amenities internally which is proportionately maximum in any given project is West, Pune.

(central open space for amenties)

• One of the biggest Club House in PCMC spread over 46,000 Sq. Ft.
• Resort themed club house design

• 1st Sport centric project in Pune

• Pollutions free 7PD, there will not be any manufacturing companies near by.
• It is an hour's drive from proposed international Air port in Panvel.
• Very close to Pavna River which would provide uninterrupted water supply.
• Ground water level in 7PD available at 20-30 ft. only
• Alu-form Technology makes this project long lasting, gives cracks free external & internal walls, minimizes the leakage & seepage issue, better finishing means  no waviness on the wall, more carpet area because of no plaster, minimal offsets of Pillars & Beams.

• 1st 22 floors project in this side of highway in PCMC and superlative structure design of the building.

• Fast constructions speed & low labor dependent constructions which minimize the possibility of delay in possession.

• Almost 1km of jogging track inside the project, one of biggest jogging track in any residential project in Pune.

• 
  
• More than 90% apartments are 3 side open which gives more lights & air flow, so the less consumption of electricity
• Biometric access to its residents
• Only 2,3,4BHK apartments in 7PD
• Good option for those who are looking for Self occupation, Investment & Rental Income because current rate is Rs. 6500/- or more in the vicinity.
• Footprints of building in the project is unique which gives un-obstacled view, more openness, better ventilation, more lights in every apartments, maximum distance between the buildings.
• Started with 5 buildings A, B, C, D and E. Building A & D is consist of smart 2BHK, Building C&E is combination of large 2BHK & 3BHK and Building B is having large 3BHK & 4.5BHK apartments.

Following are the details of apartment.

TYPE	AREA (Sq. Ft.)	Building
2 BHK	1060	A & D
2 BHK	1192	C & E
3 BHK	1514	C & E
3 BHK	1634	B
4.5BHK	2363	B

Below are links for better preview of the project:

(7 Plumeria Drive- Walk Through)

Finally, excellent review by 7PD flat owners:

  (7 Plumeria Drive- Customer’s Testimonial)

Happy Reading..... :-)

Keep Enjoying....... :-)

I request everyone to please comment on my blog.                                                       

HINJEWADI REAL ESTATE_ CURRENT REALITY

Hinjewadi is the suburb of Pune city & part of western Pune. Once, the hottest market for real estate in India where Hinjewadi witnessed average appreciation of 30% or more per year during year 2009- mid 2014. Hinjewadi had the potential of absorbing lacs of home buyer aspirants to get their dream home. It has   very strong connectivity from Mumbai-Pune Expressway, Bangalore, Pune City, PCMC area etc which attract the investors & end user to buy home. It also employs approx. 3 lacs people, in which most of them think to stay nearby areas from their offices. But following are the reasons i.e. day to day traffic issue, social infrastructure developments, etc. which resist the home buyers’ decision to invest. Still Hinjewadi has the maximum crowd of investors because of rental income. Bachelors IT guys in group can take flat on rent paying maximum rent, individually very smaller amount. More than 60% tenants are the bachelor IT guys. If this area wants to attract more mixed crowed has to be better developments, especially traffic solution.

From the last 2-3 years, MIDC is planning to eradicate these issues by expanding roads, allowing more commercials like malls, multiplexes, hotels, hospitals, etc. which are basic necessities these days. But a little problem because of Hinjewadi comes under in both MIDC & PMRDA earlier known Gram Panchayat partly, so the intention/conflicts of both development authorities arise.

Builder has done the excellent developments as of now. And even now faster & smarter development is being done. Some of the excellent offerings by builders like- Yashwin by VJ, Milange by Rama Group, Tinsel Town by Kohinoor Group, High Mont by Mittal Group and EON Homes by Kasturi Housing, etc. Also lot of future developments are proposed by many builders like 45 acres of VHTPL development by TCG Real Estate, 7 Acres of 32 Pinewood Drive by Bhandari Associates, etc. These are the projects which will change the face of Hinjewadi.

Also some of the beautiful developments are already done in this area like: Blue Ridge by Paranjape Schemes, Ashok Meadows By Mumbai based conglomerate Peninsula Land Ltd., The Crown Greens by Kolkata based MNC TCG Real Estate, Megapolis By Kumar Properties, etc.

As i already mentioned about the appreciation till mid 2014, I guess that is the time when Hinjewadi property rate was on maturity stage & henceforth declined. I also understand that this market is going through very tough phase so the property rate is minimal. Builders were selling property at the average rate of Rs. 5200/ sq. Ft. till Mid 2014. Now rate of the property in the same area is the more or less same and additional offers are huge like-no pre-emi till possession, lot of accessories in the apartments, huge discounts may be up to Rs.1000/ Sq. Ft., etc.

Also more issue with the property which comes under MIDC where the land is on lease of 95-99 years. Customers do not prefer especially lease hold property, since there are lot of conflicts in the agreement clauses between builders & MIDC. I guess some of the builders are fighting case in court against the some clauses mentioned in the agreement. And customers only came to know after getting possession & resale of the apartments. So, lease hold property is the biggest challenging property.

Most important, finally metro-line is proposed in the later developments of 2^nd phase of metro and this development is proposed till Hinjewadi phase 3 which may resolve/eradicate the traffic issue, hence the demand rise of property.

Happy Reading..... :-)

Keep Enjoying....... :-)

Sincerely,

Praveen Kumar

9158892286

FUTURE OF PUNE REALTY MARKET

We all understand that real estate sector is going thru very tough phase and I guess it happens after certain intervals, which is actually a good thing for any product/ industry life cycle. Otherwise we would not understand the value of customers/industry/sectors, etc.

But also I see Pune Realty market is better than the other metro cities in India, may be because of following reason:

• Pune Realty market is still in growing phase and we can see other metro cities in India has seen the maximum growth and now in maturity stage like Mumbai & NCR.

• It is also known as oxford of India in education- 35 engineering colleges, which is highest in the world in any given city. Pune University has 57 Engineering colleges affiliated to it, which is highest in the world.

• It has only 38% of local population (i.e. Marathi) . Hence a true cosmopolitan with around 20% North Indians, 10% Tamilians, 14% Telugites, 10% Keralites, 8% Europeans(Koregaon Park), 5% Africans, 2%Bangalis and 6% a mixture of all races.

• Pune has produced the highest number of professionals in USA almost 60% of the Indian population abroad is from Pune.

• Excellent connectivity from economic capital of India i.e. Mumbai and Bangalore.
• Climate /weather is very moderate, soothing which attracts the industries and people. 
• Futuristic development plan by local government bodies like Corporation (PMC, PCMC), MIDC and now PMRDA started working especially for the development of suburb of Pune.

• It has some of the finest schools, top IT companies, leading corporate offices, hotels, hospitals and entertainment hubs.

• Demand & supply of homes in Pune has good ratio: It has biggest IT & Bio-Tech hub in India, software companies Pune-212, followed by Bangalore - 208, Hyderabad - 97. Hence called the Silicon Valley of Maharashtra.

• 2nd largest centre for automobile industry.

• Maximum number of MIDC in Maharashtra & near by Pune.

• Also spread of MIDC on biggest land parcel in any given city in India.

• Beautiful scenic destination/places near Pune like- Mahabaleshwar, Lonawala-Khandala, Sinhgad Fort, Sirdi, Lavasa City, etc.

• And most important point is transparency during dealing between builders & customers. Still, Pune comes 1st in launching of such project having all the approvals , sanctions of the project. 

So, in true sense Pune realty market is the most favorable market for investors and end users. Also we can expect good future growth of realty market in Pune. And it has huge scope of development. Maximum industries & companies are suburbs of Pune where now residential & commercial development is  in full swing. So, we can see the minimal delay of the project compare to other metro cities in India.

Pune Realty Market Rocks!!!!

Hope for the Best.  😊😊

Sincerely,

Praveen Kumar

9158892286

MARKETING TOOLS FOR REAL ESTATE COMPANIES

There are different ways of marketing to target the segmented market. To get the optimum output of marketing, we required the integration & synchronization of all the tools of marketing & target customers that is maybe called as strategy.

Marketer must know their target customers to make or formulate their marketing strategy. It means you deliver your message to your target customers. To making strategy, marketer must know how to segment the market according to the product. 

There are various media through which company target the market, especially the real estate companies. 

Following are the tools or media:

1.      Collateral:

Ø  Visiting Cards

Ø  Brochures

Ø  Floor Plans

Ø  Rate Card

Ø  CD/DVD

2.       Internet Media:

Ø  Website: It must have all the required details e.g. customers testimonials

Ø  Social Networking Websites

ü  Facebook

ü  Google +

ü  Twitter

ü  Linkedin, etc.

Ø  Property Portals

ü  99 Acres

ü  Magicbricks

ü  Housing.com

ü  Makaan.com, etc.

Ø  Blog

Ø  Mobile Apps for projects

Ø  Google Ad words

Ø  Emailers, etc.

3.      Events:

Ø  Sponsorships of events

Ø  Events or activities for prospecting clients & existing clients

Ø  Corporate activities & presentation

Ø  PSU companies

Ø  Property Expo

4.      Outdoor Media:

Ø  Hoarding

Ø  Site Display

Ø  Pole Kiosk

Ø  Gantry

Ø  Nearby areas branding

Ø  Transit Ads- Trains, Buses, Rickshaws, etc.

5.      Electronic media

Ø  T.V.

Ø  Radio, etc.

6.      Print Media

Ø  News Papers- Daily, Weekly, Journals

Ø  News Letters

Ø  Magazines

7.      References

Ø  Existing client’s Referral

Ø  Channel Partners

Ø  Stake Holders

ü  Employee

ü  Vendors

ü  Media Agencies

ü  Bankers, etc.

These tools may help/assist marketer for decision making for their marketing activities. This is just short brief ideas about the marketing activities, which real estate companies generally do.

Best Wishes,

Praveen Kumar

+91 91588 92286