Governance – Page 19 – FindMyProperty

Demonetisation and RERA (Real Estate Regulatory) have basically changed the dynamics. It has specially hit demand, End user markets have performed better than investor/speculator markets. Protect consumers have think that RERA will come into effect most states by May 2017. “That will extend working capital cycles. But implementation is the key and developers are holding back new launches till final implementation”. Developers prefer to restrict launches to clear inventories in on-going projects.

Commercial sector is also positive with 5% to 10% rent hikes. There is a limited supply o Grade A commercial real estate assets. It also sees retail and warehousing as possible dark horses. Good quality retail malls enjoy 10% vacancy while rent growth tracking trading density growth. The warehousing sector is attracting interest from investors.
Real estate market is probable to reach $180 billion by 2020 from $93.8 billion in 2014. Rise of nuclear families, rapid development and rising household income are likely to endure the key drivers for growth in all circles of real estate, including residential, commercial and retail.

For the period January to September 2016, total private equity (PE) investments in the real estate sector were detailed at $4.24 billion, showing a 22% increase compared to the same period last year. During the third quarter of 2016, accumulative investment in residential assets increased at 9% on a quarter-on-quarter basis. Government has also higher FDI limits for townships and settlements development projects to 100%.

Government approved construction of 90,095 more affordable houses for urban poor under Pradhan Mantri Awas Yojana (Urban) with an investment of Rs 5,590 crore in three states. PM Awas Yojna is an ambitious housing scheme to provide affordable houses to the poor people of the country at affordable cost. The main purpose is to provide houses to all by 2022. The central assistance for the same would be Rs 1,188 crore.

Here are complete details of the houses in the states where these houses are sanctioned and the investment of the central government and MHUPA.

[table id=172 /]

The ministry of housing & urban poverty alleviation (HUPA) has allotted the highest 82,262 houses in 49 cities and towns of Madhya Pradesh with an investment of Rs 5,260 crore with a central assistance of Rs 1,071 crore.
Jammu & Kashmir got 4,915 houses in 24 cities and towns with an investment of Rs 240 crore and central assistance of Rs 74 crore, while Dadra & Nagar Haveli’s capital Silvassa has been sanctioned 803 affordable houses with an investment of Rs 26 crore and central assistance of Rs 12 crore.

The government approved 46,823 new houses under the beneficiary led construction (BLC) component of PMAY (Urban), enhancement of 773 houses in Jammu & Kashmir under BLC and building 42,499 new houses in Madhya Pradesh under affordable housing in partnership (AHP) component.

In Madhya Pradesh, another 39,763 new houses will be built under BLC component under which an eligible beneficiary is assisted to build a house on the land owned by him/her. This takes the total affordable houses approved for Madhya Pradesh to 187,135 and for Jammu & Kashmir to 5,864. The government has so far approved construction of 1,651,687 affordable homes for the benefit of urban poor under PMAY (Urban) with a total investment of Rs 89,072 crore with central assistance of Rs 25,819 crore.

Under BLC (Beneficiary Led Construction) and AHP (affordable housing in partnership) components of PMAY (Urban), central assistance of Rs 1.50 lakh is provided for each beneficiary.