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Saturday, 25 April 2015

PROPOSED CONCESSION IN REALESTATE BILL - BOOST-UP REALTORS


The proposed concession in the Realestate bill wherein the Builders will be allowed to divert up to 50% of the amount collected from their buyers for a specific project, to their other projects, as against the earlier mandated share of 70% of the amount collected, will not only settle the long pending claim, but also will boost-up the Real Estate Sector.


As a matter of fact, the much awaited entry of large international suppliers like Wal-Mart into the country is desperately anticipated by many in the realty market, where contractors and designers hope to benefit from an increased need for retail areas. Experts hope that there shall certainly be a development in the Real estate sector once international multibrand suppliers enter the market. According to Mr. Mehta, Director for real estate business, Motilal Oswal Personal Value Consultants “For the time being there will be a spurt in need as suppliers need to set up test stores immediately.”However, whether this will convert into sustainable need in the long run or not depends upon whether these companies are able to get over infrastructural difficulties and stand up well in the local Indian market.

As regards the position in Bangalore, Amplus Realty Finance (Fund-I),the first SEBI-registered household residence fund,hither to focused on Gujarat,propose to invest in Bangalore real estate project, and declared its first financial investment in Bangalore real estate venture.The fund while expecting around 25 per cent profits on their investment, in three years, is additionally looking for financial investment proposals in prime high-end and mid-market residential projects in Ahmedabad, Surat, Vadodara and a few other locations at Mumbai, Bangalore including the NCR.


The Confederation of real estate developers association of Indian (CREDAI) has time and again approaching the Government and requesting the Ministry to consider changes in the real estate market to boost development.In a letter to MPs, CREDAI’s National President Mr. Lalit Kumar Jain opined that even though the government is taking all factors into consideration and showing its inclination to take effective steps which would certainly boost-up the Real estate sector.  However, he felt that much more can be done without any debate or running into additional cost just by concentrating on the real estate market. The Confederation added that there are some disadvantages in the suggested Land Purchase and Actual Property Regulating Bills which hopefully would be sorted out in the ongoing session of Parliament, and before final approval of the proposed Bill.

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