Governance – Page 25 – FindMyProperty

Year 2016 was an interesting one for real estate sector. New real estate regulatory bill in March 2016, improvements to REIT rules in budget 2016-17, Benami transactions bill in August 2016 and smart cities list pronounced in September 2016. The latest change, on November 8, 2016, where the government demonetised Rs 1,000 and Rs 500 currency notes, re-emphasised the government’s war against black money across all sectors and especially real estate.

All these initiatives set the tone for what is in store, for the sector and for the mid-income buyer/investor in 2017. A more transparent, better planned and less cash-dominated real estate sector, holds the promise of low risk and stable returns. However, even as the sector moves towards consolidation, to cherry pick an investment in 2017, the buyer must keep in mind certain key parameters related to the asset class, geography, as well as investment horizon.

Buyers look for in 2017

In residential projects, the most essential factor will continue to be the developer naming. This implies understanding of earlier delivery record, source of funds and checks on essential documents, like commencement certificate, environmental clearance and approved constructing plans. A project that is nearing completion, encompassed by good infrastructure and has endorsement for home loan by key banks would be fundamental criteria.

The first REIT is expected by june in 2017 and it will provide an implement that offers regular profits at moderately low risk levels. While it may take the first half of 2017 for the full effect of demonetisation to be felt by real estate markets and transactions will be moderate, the second half should see business as usual resume. 2017 promises to be an exciting year for real estate investment.

YEIDA (Yamuna Expressway Industrial Development Authority) has finally initiated offering possessions letters to plot allottees under residential plot scheme 2009. The first lot of 55 allottees has been issued possession letters by the Authority. Another 1600 plots owners will be handed over possession by mid-2017, another 4800 will receive possession next year.

Firstly, 55 plots, twenty owners of 4,000 square meter plots and thirty-five owners of 2,000 square meter plots in Yamuna Expressway. Authority is trying to hand over possession of 1633 plots, these plots measure 300 and 500 square meters and are located in 18 and 20 sector. Allottees are facing a delay in getting possession of their plots due to farmer agitations. Farmers of nearly 77 villages in the area have been agitating for a hiked compensation which is approved by state government in 2014.

YEIDA indicated about Rs 300 crore has already paid to farmers for land in sector 20 of the YEIDA area. The Authority is in the process of taking over possession of sector 18, which has nearly 7000 allotted plots. As and when acquisition and development of the plots are completed, the allottees will be handed over the possession of the same.